US Economics

US Economics Weekly

21 April, 2017

Competitive pressures to weigh on core inflation

The unexpected decline in core consumer prices in March is not a signal of sudden weakness in the real economy. Nevertheless, it is partly due to heightened competition in some sectors, which will continue to put downward pressure on prices over the next few months. As a result, we now expect the pick-up in core CPI inflation this year to be slightly more gradual than we previously believed.

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