Glacial inflation slowdown impact

Clear sign: Electric vehicles are seen on an assembly line at the General Motors factory in Detroit, Michigan. The closely watched inflation figures in the United States follow the latest monthly jobs report, which exceeded expectations for a fifth straight month. — AFP

NEW YORK: US consumer price data this week, arriving on the heels of surprisingly strong jobs numbers, is projected to show a glacial slowdown in underlying inflation that explains the Federal Reserve’s (Fed) cautious approach to lowering interest rates.

The March core consumer price index (CPI), a measure of underlying inflation that excludes food and fuel, is seen rising 0.3% from a month earlier after a 0.4% advance in February. Wednesday’s report is expected to show a similar increase in the overall CPI.