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Bloomberg
Some consumer prices that skyrocketed in January probably returned to Earth in February, indicating fears of runaway US inflation that jarred financial markets were overblown.
The consumer price index probably rose
0.2 percent in February from the previous month, after a 0.5-percent jump in January, according to the median estimate of economists surveyed
by Bloomberg News ahead of Labor Department figures. Excluding food and energy, prices were projected to advance 0.2 percent following a bigger-than-forecast 0.3 percent increase in January.
Those earlier readings temporarily sent stocks tumbling when investors interpreted the data as an indication of the kind of inflation that would prompt the Federal Reserve to act more aggressively on interest-rate hikes, leading to higher borrowing costs for companies.
This time around, things are looking cooler. And one of the chief reasons put forward is that oft-cited fundamental law of physics: what goes up, must come down. In January, apparel played a major role in boosting inflation, with the biggest rise in prices in about 28 years. In 2017, a robust January print was followed by a weaker February outcome, also stemming from fluctuations in retail clothing prices. Societe Generale senior US economist Omair Sharif is betting this year will show a similar outcome.