WASHINGTON (AP) — The government reports the consumer price index this morning and a survey of economists say they expect the good news will be that inflation is still not much of a factor in the economy.
Economists surveyed by FactSet forecast that the consumer price index increased a seasonally adjusted 0.2 percent last month from April.
Overall prices have risen just 1.5 percent in the 12 months that ended in April. And core prices, excluding volatile food and gas, have risen just 1.9 percent, in line with the Federal Reserve's inflation target of 2 percent.
Tame inflation makes it easier for the Fed to continue its extraordinary efforts to boost economic growth. It has also allowed consumers to increase spending this year, despite weak wage gains and higher Social Security taxes.