by Paul Davidson
USA Today
Since a key inflation report this month showed an unexpected surge in consumer prices, hopes for a flurry of interest rate cuts this year have dimmed, the stock market has tumbled and an upbeat mood on the economy has soured a bit.
But inflation is still on course to gradually ease this year and in 2025, top forecasters say. The recent price acceleration largely centers on a few categories, such as rent, car insurance and medical care.
While some economists say the cost of such services will continue to rise sharply in 2024, others expect a slowdown that could still allow the Federal Reserve to lower interest rates more than markets now anticipate.