(Bloomberg) — Underlying US inflation is seen rising at a monthly pace that corroborates the message from central bankers that interest rates will need to stay higher for longer.
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The consumer price index excluding food and fuel, a measure favored by economists as a better indicator of underlying price pressures, is seen increasing 0.3% for a second month. On an annual basis, the core CPI is projected to cool, but that’s a reflection of base effects: the index in September of last year rose the most since 1982.
Resilient demand in the world’s largest economy, bolstered by unrelenting job growth, has complicated Federal Reserve efforts to get inflation down to its preferred level.
While easing, price pressures are nonetheless proving sticky — a reason why Fed officials have been vocal about the need for their benchmark rate to remain elevated for an extended…
