Inflation & Prices
US Inflation, Recession Forecasts Ease on Trade Truce With China
Latest Bloomberg survey still suggests economy is shifting into a lower gear
Economists see slightly slower US inflation this year after the US and China reached a temporary trade agreement, which also helped reduce odds of a recession in the near term.
Forecasters in the May Bloomberg survey expect the personal consumption expenditures price index — the Federal Reserve’s preferred inflation metric — to peak at 3.1% at the end of 2025, a slight step-down from the 3.2% increase projected in April. They also marked down estimates for the consumer price index through early next year.