USA: Core inflation is forecast to hit 5.6%, noticeably less than a month before
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US CPI (Mar) – 12/04 – US headline inflation has been coming down steadily since the record peaks of June last year of 9.1%.
Core prices on the other hand have been slowing much more gradually slipping to 5.5% in February
Since then, prices have been slowing steadily, falling to 6% in February, and the lowest levels since October 2021, down from 6.4% in January. Core prices on the other hand have been slowing much more gradually slipping to 5.5% in February, and still well above the levels seen through all of 2021. In a sense this slowdown is encouraging given the pickup in consumer spending seen at the start of the year, however, in other areas of the economy, US inflation has continued to remain stubbornly high. This week's core numbers are predicated to tick back up to 5.6% which might deal a blow to expectations of an imminent Fed pause when the central bank next meets in May.
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