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MNI BRIEF: Fed's Favored CIE Inflation Reaches 7-Year High

WASHINGTON (MNI)

One of the Fed's preferred gauges for inflation expectations climbed to 2.05% in the second quarter, the highest level since 2014.

The Index of Common Inflation Expectations nudged up from 2.02% the prior quarter. The gain moves it closer to the highest reading in measurements back to 1999, of 2.15% set in Q1 and Q2 of 2004. The CIE index combines 21 market and survey measures into a single view of how households and businesses expect prices to behave.

This week Fed Chair Jerome Powell told lawmakers on Capitol Hill that recent inflation expectations measures are "not at a troubling level" and within the central bank's preferred range.

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com

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