U.S. Outlook: Will inflation come back to life?

Scott Anderson
Posted by Scott Anderson
Chief Economist

Just when the market and the Federal Reserve had lost all hope on inflation, we will be watching next week’s inflation data for  August with a keen interest.

Graph showing year over year change in producer price inflationWe are forecasting a modest bounce back in producer price inflation.

For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Sept. 8.

Key observations:
  • Hurricanes Harvey and Irma should only add to the upward price pressure on commodities as building gets underway.
  • Producer prices in the construction sector are rising at the fastest pace since 2014.
  • From a year ago, retail gas prices are now up 20.5%.
  • We think the chance of a December rate hike from the Fed is at just over 50%.

Click here to read my full report.

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