Eco Week Ahead
Glacial Inflation Slowdown Set to Back Fed Rate-Cut Caution
- ECB, Bank of Canada expected to hold, Israel might lower rates
- Bank of England awaits verdict for Bernanke investigation
Shoppers on 5th Avenue in New York.
Photographer: John Taggart/BloombergUS consumer-price data in the coming week, arriving on the heels of surprisingly strong jobs numbers, is projected to show a glacial slowdown in underlying inflation that explains the Federal Reserve’s cautious approach to lowering interest rates.
The March core consumer price index, a measure of underlying inflation that excludes food and fuel, is seen rising 0.3% from a month earlier after a 0.4% advance in February. Wednesday’s report is expected to show a similar increase in the overall CPI.