What To Expect From Wednesday’s Report On Inflation | Global News Avenue

Inflation may begin in 2025 and continues to be too comfortable, with rising prices still ignoring the purchasing power of household budgets.

According to a survey by economists, a report on Wednesday is expected to show that the Consumer Price Index measures 2.8% in the past 12 months, according to a survey by economists. From 2.9% in December. go through Dow Jones News and Wall Street Journal.

Consistency with expectations will undermine annual inflation increases for three months, but will still be well above pre-pandemic levels when CPI is typically at or below 2%.

If the forecast proves correct, inflation data will indicate that inflation has been at a high rate after a significant decline in the first half of 2024 for several months.

“The January CPI report is likely to indicate inflation is Still stubborn in early 2025.”

The last mile of Fed inflation target is the hardest

Since mid-2022, CPI has risen by 9.1% per year, and inflation has dropped sharply since the height of 40 years.

The Fed raised its benchmark interest rate to boost borrowing costs on various loans, lower the economy, and reduce inflation to its 2% annual interest rate target. But the road to 2% has hit some obstacles, and many economists believe that Donald Trump’s policies may be completely derailed.

In less than a month the President levied tariffs on diplomacy and has Commit more. Tariffs can push up prices for a variety of products Americans buy from abroad, which has the potential to trigger new high inflation.

Deutsche Bank economists estimate in Monday’s analysis that so far the Trump administration’s announcement could drive inflation, measured by personal consumption spending, across the entire percentage point in 2025, depending on it The cost of the merchant is transferred to the consumer.

Pay close attention to the core

January data will provide some ideas for inflation trajectory.

When measuring inflation trends, Fed economists and policy makers pay special attention to the “core” measures of inflation, which excludes the prices of food and gas. Although crucial to household budgets, these projects may change for reasons not related to the broader inflation trend.

Median forecasts require core inflation to rise 3.1% over the past 12 months, down from 3.2% in December.