Further declines in gasoline prices will bring down headline inflation in November, while core inflation, excluding food and energy prices, remains economists said. This is a replay of the prior month, when energy prices fell 2.5%, led by a drop of 5% in gasoline prices. The government will release the CPI data on Tuesday at 8:30 a.m. Eastern.
According to a Wall Street Journal survey, economists expect headline inflation was unchanged in November, extending a stall that started in the prior month. That should bring headline inflation down to 3.1% from 3.2% in the prior month. The flat reading is very “Fed-friendly,” said Scott Anderson, chief U.S. economist at BMO Capital Markets. Fed officials will get the data at the start of their two-day policy meeting where they are expected to push back, at least a bit, on market expectations of quick rate cuts next year. Read: Fed will try to ‘keep calm and carry on’ In contrast, core inflation will remain at an elevated 4% year-on-year basis in November, economists forecast. Core inflation likely rose 0.3% in the month, after a 0.2% gain in October. There is still good news on core inflation. If economists forecasts are correct, core inflation over the past six months would be running at a 2.8% annual rate. Economists from Deutsch Bank noted this would be the first time core inflation has been below 3% since March of 2021. Economists will be watching core ser …
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According to a Wall Street Journal survey, economists expect headline inflation was unchanged in November, extending a stall that started in the prior month. That should bring headline inflation down to 3.1% from 3.2% in the prior month. The flat reading is very “Fed-friendly,” said Scott Anderson, chief U.S. economist at BMO Capital Markets. Fed officials will get the data at the start of their two-day policy meeting where they are expected to push back, at least a bit, on market expectations of quick rate cuts next year. Read: Fed will try to ‘keep calm and carry on’ In contrast, core inflation will remain at an elevated 4% year-on-year basis in November, economists forecast. Core inflation likely rose 0.3% in the month, after a 0.2% gain in October. There is still good news on core inflation. If economists forecasts are correct, core inflation over the past six months would be running at a 2.8% annual rate. Economists from Deutsch Bank noted this would be the first time core inflation has been below 3% since March of 2021. Economists will be watching core ser …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]