Wall Street Expects Inflation to Moderate in September Despite Oil Above $90
Source Summary
Economists predict the U.S. Consumer Price Index report due Wednesday will show headline inflation at 0.5% month-over-month and 3.6%–3.7% year-over-year for September, up from 0.4% m-o-m and 3.4% y-o-y in August. Core CPI, excluding volatile energy and food prices, is expected to rise 0.2% in September, down from August. The moderation in core inflation despite elevated oil prices above $90 per barrel suggests the Federal Reserve may have room to slow interest rate hikes.
Why it matters
Moderating core inflation despite high oil prices would indicate that underlying price pressures are easing, potentially allowing the Federal Reserve to reduce the pace of interest rate increases.
What remains uncertain
The actual CPI figures will be released Wednesday and may differ from economist expectations.
