The outlook for the January CPI calls for a monthly increase of 0.3% for the all-items index and a 12-month inflation rate of 2.9%. Core readings are projected at 0.3% and 3.1%, respectively.
by Jeff Cox
CNBC.com
The January consumer price index report is likely to tell a familiar story: another month, another expected miss for inflation as it relates to the Federal Reserve’s goal, with concerns aplenty about what happens from here.
So instead of looking for hope from the headline readings, which aren’t expected to change much from December, markets will pore through the details for trends that could shed some hope that the Fed eventually will be able to start lowering rates again.
“Inflation is stuck above target, with risks skewed to the upside, activity is strong, and the labor market appears to have stabilized around full employment,” Bank of America economist Stephen Juneau said in a note. “If our January CPI forecast is correct, the case for the Fed to stay on hold will strengthen further.”