Analysis: A large increase in core CPI could trigger the Fed to consider a pause in rate cuts

According to a Bloomberg survey of economists, CPI growth and core CPI growth excluding food and energy may register 0.1% and 0.2%, respectively, Gold Ten reported. The core CPI is seen as a better signal of future inflation. Prices of groceries and gasoline can sometimes fluctuate wildly and inflate the overall price level.

A larger increase in the core CPI could send shockwaves through financial markets and revitalize the debate about the Fed's “pause” in cutting interest rates, which could be abandoned in November or December if further progress on inflation stalls. .