Fed-favoured inflation gauge is set to ease

Consumer expectations: Goolsbee at a Fed Listens event in Chicago. The Chicago Fed president downplayed a report that showed an increase in consumers’ expectations for future inflation, while conceding the figure “wasn’t a great number”. — Reuters

WASHINGTON: The Federal Reserve’s (Fed) preferred inflation metric is expected to cool to the slowest pace since June, but glacial progress on taming price pressures overall will keep policymakers cautious about lowering interest rates further.

The core personal consumption expenditures price index, which excludes often-volatile food and energy costs, probably rose 2.6% in the year through January in Commerce Department data due on Friday.