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Consumer prices rose last month but in line with expectations, adding weight to the belief that the Federal Reserve will cut interest rates next week, Bloomberg reports.
The core consumer price index—which excludes food and energy costs—increased 0.3% for a fourth straight month, Bureau of Labor Statistics figures showed Wednesday. It rose 3.3% from a year ago.
Economists see the core gauge as a better indicator of the underlying inflation trend than the overall CPI that includes often-volatile food and energy costs. The headline measure rose 0.3% from the prior month and 2.7% from a year before.
While price pressures have eased since the post-pandemic peak, progress has recently stalled, prompting several central bankers to call for a more gradual pace of cuts going forward.
