All articles tagged with #goods prices
The US wholesale inflation in June was stable overall, with a notable decline in travel and services prices due to reduced travel demand, while the cost of goods increased, reflecting the complex impact of tariffs and consumer behavior amid economic uncertainty.
Bloomberg Economics anticipates that the upcoming US consumer price index (CPI) report will likely reveal soft inflation, primarily attributed to further declines in the goods sector, with the core consumer price index, excluding food and energy, expected to have risen by just 0.2% in December, aligning with the Federal Reserve's efforts to curb inflation.
Deflation in goods prices, particularly appliances, furniture, and used cars, could help bring inflation down to the Federal Reserve's target of 2% by the second half of 2024, according to economists. Morgan Stanley projects that core goods deflation will continue as supply chains improve and demand cools, offsetting price increases for services. They forecast that personal consumption expenditure inflation will drop to 1.8% in September 2024, lower than the Fed target and earlier than expected. However, the prices for food and services continue to increase as consumers spend more on experiences and travel, with credit cards being the preferred method of payment for leisure travel expenses.