![]() ![]() ![]() REUTERS/Leah Millis TPX IMAGES OF THE DAYįederal Reserve Chair Jerome Powell has reiterated repeatedly that he believes any impending rise in inflation this year will be "transitory," resulting as the year-over-year data laps 2020's highly depressed inflationary prints. "However, the persistent softness of rent inflation should limit the degree of acceleration in core inflation for some time, with the exception of an expected jump in year-on-year changes due to base effects."įederal Reserve Chairman Jerome Powell holds a press conference following a two day Federal Open Market Committee policy meeting in Washington, U.S., January 30, 2019. "We expect relative price changes between goods and services to exert modest inflationary pressure going forward," he added. That would imply goods prices might decline but service prices might increase in coming months, as consumer demand shifts back to services requiring personal contact," Nomura chief economist Lewis Alexander wrote in a note Friday. "If our forecast is correct, February would mark the beginning of a reversal of COVID-induced relative price changes. ![]() Still, the possibility of an upside surprise in consumer prices gains has left investors jittery, with many market participants bracing for inflationary pressures to pick up rapidly later this year as more businesses reopen and many consumers start to release their pent-up savings during the pandemic. But excluding more volatile food and energy prices, the CPI is expected to have risen 1.4% year-over-year to match its January increase, since a jump in energy prices during the harsh winter weather last month likely contributed much of the gain. Over last year, the CPI likely rose by 1.7%, picking up from the 1.4% rise in January. ![]()
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