The consumer price index for January, which will be released this morning, will most likely reaffirm that service sector inflation remains sticky and stubborn amid strong job and wage gains that are the primary drivers of aggregate demand.
While housing inflation is easing, owners’ equivalent rent remains one of the two major catalysts for rising cost pressures on American households.
We expect a 0.3% gain on the month inside both the top-line and core CPI with a 2.9% annual increase in the former and a 3.1% annual advance in the latter.
Read more of RSM’s insights on inflation, the economy and the middle market.