Key inflation gauges may offer path to rate cuts


Important week: The US Federal Reserve Building in Washington. The latest US inflation readings are set to be released this Friday. — Reuters

NEW YORK: The US Federal Reserve’s (Fed) favoured inflation yardsticks are poised to show the tamest monthly advances since late last year – a stepping stone for officials to begin lowering interest rates, possibly as soon as September.

Economists expect no change in the May personal consumption expenditures price index and a minimal 0.1% gain in the core measure that excludes food and energy, based on median projections in a Bloomberg survey of economists.

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