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

Posted By Scott Anderson In Economic Outlook | No Comments

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 inflation [1]We 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. [2]

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URL to article: https://changematters.bankofthewest.com/2017/09/08/u-s-outlook-will-inflation-come-back-life/

URLs in this post:

[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2017/09/outlookgraph.png

[2] Click here to read my full report.: http://blog.bankofthewest.com/wp-content/uploads/2017/09/BankoftheWest_USOutlook_09_08_17.pdf

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