indices rose between 1% and 2% as of 12:30 p.m. Stocks are moving higher after the consumer price index was released. Supercore inflation rose by 0.2% last month and is up almost 7% from a year ago. Supercore inflationįed Chair Jerome Powell has said he’s most concerned about "supercore" inflation, a new term to describe prices for underlying services, excluding housing, which he says are mostly fueled by pay increases and could be tougher to bring down. Goods prices generally have fallen as supply chain bottlenecks have improved and rent increases are expected to pull back.īarclays predicts yearly inflation will slow to 2.9% by December, moderately above the Fed’s 2% target. Ian Shepherdson of Pantheon Macroeconomics also expects a quarter-point increase, "assuming markets stay calm and no more banks fail."ĭespite the big monthly increase in consumer prices, economists still expect yearly inflation to resume its descent in the coming months. economist of Oxford Economics, who expects a quarter-point hike. "Though stress has spiked in the banking system, the Fed is still highly focused on taming inflation," says Ryan Sweet, chief U.S. All else equal, a resurgence of faster inflation might have led the Federal Reserve to approve a half-point interest rate increase next week after gradually moderating the pace of its hikes to a quarter point.īut some top economists say the collapse of Silicon Valley Bank and the risks to the financial system posed by other troubled regional banks could lead the Fed to pause its hiking campaign or lift rates by a quarter point at most.
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