Bill Adams, chief U.S. economist at Fifth Third Bank, expects the U.S. Consumer Price Index to post another strong increase in September, driven by a rebound in gasoline prices. He said higher fuel costs could also feed into airfares, which are part of core CPI, while most other core components are likely to remain relatively moderate. Adams expects new and used vehicle prices to edge lower as dealers cut prices to clear inventory, with most other durable goods showing little change. Housing inflation may slow again, reflecting the delayed pass-through from milder gains in home prices and rents seen last year and early this year. On the producer side, he said PPI could rise faster than CPI because diesel prices increased more than gasoline in September, and diesel has a larger effect on producer costs. He also expects transportation and warehousing costs to rise sharply, pushing core PPI higher, while healthcare service prices may stay relatively mild because of residual seasonal factors.
Bill Adams, chief U.S. economist at Fifth Third Bank, expects the U.S. Consumer Price Index to post another relatively strong increase in September, with the move driven by a rebound in gasoline prices, according to a report cited by Jin10 and carried by Odaily.
He said higher fuel costs could also lift airfares, a component within core CPI. Other core CPI categories, however, are expected to show more moderate increases.
Adams said new and used vehicle prices may decline slightly as dealers work through inventory with price cuts and promotions. Prices for most other durable consumer goods are expected to show little change. Housing inflation may slow again, reflecting the lagged effect of milder increases in home prices and rents seen last year and in the early part of this year.
On the producer side, he expects the Producer Price Index to rise faster than CPI because diesel prices increased more than gasoline in September, and diesel has a bigger impact on producer costs. Transportation and warehousing expenses may also rise sharply, adding upward pressure to core PPI.
He also said healthcare service prices may post relatively mild gains because of residual seasonal factors.
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