U.S. Inflation Could Still Pick up Amid Volatile Energy Prices

Dow Jones
08/13

0547 GMT - U.S. inflation has likely peaked in 2Q, but could still pick up due to the energy price uncertainty, says UOB senior economist Alvin Liew in a note. Headline CPI rose 3.4% on year, easing slightly from June's 3.5%. Declining energy prices have helped to contain inflation, Liew notes. However, "energy prices are still elevated... and geopolitical tensions in the Middle East could quickly reverse recent disinflation progress if oil prices rise again," he says. UOB expects U.S. 2026 headline and core CPI to average around 3.5% and 2.8%, respectively.

 

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