Expecting the expected slowdown in the American inflation index to the lowest level in 7 months

It is expected that the FBI’s favorite inflation scale will decline to the slowest pace since June, but the slow progress in taming price pressures in general will make policymakers care about further lower interest rates.

The basic personal consumption expenses index, which excludes the costs of food and volatile energy, often increases, by 2.6% during January, in the Ministry of Commerce’s data to be issued on Friday. The total inflation is likely to slow down the expenditures of personal consumption on an annual basis as well, according to the middle of the estimates in the poll conducted by Bloomberg for the opinions of economists.

The decline is likely to come from the categories that have witnessed relatively calmness in independent data for wholesale prices, which affect the index of personal consumption expenses, according to “Bloomberg Economics”. However, the ingredients of the inflation index that recorded strong increases will keep the consumer price index above the goal of the Federal Reserve of 2%.

This is a great reason that makes officials prefer to keep interest rates unchanged at the present time. Michael Bar is scheduled to speak for the last time as a vice president of the Central Bank to supervise, as he is preparing to step down at the end of the month, and it is expected that both the President of the Federal Reserve in Richmond Tom Parkin, and Beyak Hamak, the head of the bank in Cleveland, will comment on the numbers, in addition to others .

While the Personal Consumption Expenditure Index report will be issued, the Ministry of Commerce will issue the latest balance of commodity trade, which has expanded for a record level in December and is a major axis of President Donald Trump in his second term. Other data scheduled for this week includes new housing sales, consumer confidence, and the second governmental estimate of the fourth quarter growth.