Eco Week Ahead

US Inflation Gauges Likely Diverged Before War in Iran

Commuters at the Fort Totten Metro station in Washington, DC.

Photographer: Al Drago/Bloomberg

A pair of inflation reports, including the Federal Reserve’s preferred price gauge, surface in the coming week after a dismal February jobs report that challenged perceptions the labor market is stabilizing.

The consumer price index report on Wednesday is projected to show a core inflation measure, which strips out volatile food and energy costs, rose just 0.2% in February. That would suggest some easing in price pressures before the outbreak of the war in Iran introduced new uncertainty about the inflation outlook.