US Inflation fails to impress. The pace of hikes is going to be “very, very slow”

Consumer prices (excluding fuel and food) increased 0.1%, the smallest gain since December. The median forecast of 82 economists was 0.2%. Millan Mulraine, deputy head of U.S. research and strategy at TD Securities LLC in New York says “Inflation momentum remains very subdued. The slow pace of inflation will justify a more gradual pace of tightening by the Fed. It’s playing into their hands.” Nariman Behravesh, chief economist for IHS Inc. commented “For the moment, inflation is way below where the Fed is hoping it’ll end up, but it’s too early to say we’ll be stuck at these low levels for a long time. The pace of interest-rate hikes is going to be very, very slow.” (Bloomberg) (VIEW LINK)