Analysts warn that the next monthly Consumer Price Index report, expected Tuesday, may show U.S. inflation rising for the first time after six months of consecutive declines. But one of the country’s top economists advises against reading too much into it.
Inflation in January likely rose 0.4% from December, while core inflation, which excludes volatile food and energy items, may also be up 0.4%, according to a Reuters survey of economists last week. Rising gasoline costs and sticky prices throughout the economy are partly responsible for inflation’s staying power in the U.S., and will likely reinforce the Federal Reserve’s view that the fight against rising prices is far from over.
