A report on inflation Friday is likely to show that consumer price increases continued to run cool in July, following a trend set by recent data on consumer prices.
by Diccon Hyatt
Investopedia
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A report on inflation Friday could confirm that inflation has lost its bite, and help inform the outlook for how fast and how far the Federal Reserve’s key interest rate will fall in the coming months.
A Bureau of Economic Analysis report Friday is likely to show that consumer prices, as measured by Personal Consumption Expenditures, rose 0.1 percentage points in July from June, according to economists surveyed by Dow Jones Newswires and The Wall Street Journal. That would be the same monthly increase as in June and make for a year-over-year inflation rate of 2.5%, the same as the previous month.
Forecasters expect Friday’s report on PCE inflation to match what a separate report earlier this month, the Consumer Price Index, showed about the trend of consumer price increases: The cost of living has continued to increase only modestly in recent months following a worrisome uptick in the first quarter, and it’s on the path back to the Federal Reserve’s goal of a 2% annual rate.