April 18, 2024

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CPI inflation numbers expected to remain high - what you need to know

CPI inflation numbers expected to remain high – what you need to know

Latest numbers from Consumer Price Index (CPI) Report It comes out tomorrow, and inflation is expected to remain high.

Forecasts expect it to barely fall below 8% y/y Floating on top of it since March.

Specifically, inflation is expected to be 7.9% year-on-year as of October, according to A The median forecast of the 52 economists surveyed by Bloomberg News. Banks including Citigroup, Deutsche Bank, JP Morgan Chase and Wells Fargo have similar forecasts.

This is just a little less than 8.2% in Septemberand well above the Federal Reserve’s 2% target rate.

If that happens, it will likely dampen hopes that the central bank will temper ongoing interest rate hikes over the next several months. This means that the cost of borrowing will continue to increase for consumers, and things like car financing, credit cards and other loans will continue to increase. become more expensive.

“If we take into account this improvement, it puts a low end,” says Greg McBride, chief economist at financial services firm Bankrate. “We’ve had our heads rigged a few times, thinking we’re starting to turn a corner only to see inflation go up again.”

McBride says that while lower inflation would be good news, there will have to be a series of consecutive months of steady declines before we can say inflation is under control.

Core inflation remained runaway

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