Inflation Shows Signs of Easing, But Core CPI Upward Surprise Could Impact Rate Cut Timing
- Inflation rate slowing down, with CPI forecast to fall below 3% for first time in 3 years
- Key measure is "core CPI" which excludes food and energy prices
- Higher than expected 0.4% core CPI increase could rattle financial markets
- Fed watching housing costs and labor costs closely as key inflation drivers
- Path of inflation will provide clues on when Fed will cut interest rates
