Fed's preferred inflation measure expected to show softer increase compared to CPI due to housing costs

From Google LLC: 2024-09-12 16:17:00

The Federal Reserve’s preferred inflation measure is expected to show a softer increase compared to the Consumer Price Index (CPI). This discrepancy is due to the way the two measures account for housing costs, with the Fed’s gauge focusing more on rent prices, which have been stable. This could ease concerns about rapidly rising inflation and potentially impact the central bank’s decision-making on interest rates in the future. The difference in inflation metrics highlights the complexity of measuring the overall health of the economy accurately.



Read more at Google LLC: Inflation Using the Fed’s Favored Gauge Is Likely Softer Than CPI. Here’s Why. – The Wall Street Journal