October Inflation Expected to Remain Steady; Prices Closely Watched After Trump Win
BLS is scheduled to release Wednesday last month’s Consumer Price Index estimates
According to market estimates, the U.S. Consumer Price Index, a major inflation indicator that the Federal Reserve monitors to fine-tune its interest regime, is expected to remain steady in October. The likely increase to 2.6 percent from 2.4 percent in September is seen as an encouraging sign for further easing of the interest rate, as it’s within the envelope of the Fed Reserve’s 2 percent target.
Falling gasoline prices may have contributed to the low price increase, although price pressure on some other sectors may have tempered the overall impact, a report in MorningStar.Com suggests.
The next CPI report expected from the Bureau of Labor Statistics on Wednesday will be keenly watched as it follows last week’s Presidential vote returning Donald Trump, perceived as largely business friendly, to the White House.