Cost of Living in U.S. Unchanged as Gasoline Prices Fall

No change in the consumer-price index followed a 0.1 percent decrease the prior month, a Labor Department report showed today in Washington. The median forecast of 83 economists surveyed by Bloomberg called for a 0.1 percent advance. The core measure, which excludes food and fuel, rose 0.2 percent.

Core inflation is still running too low,” said Laura Rosner, a U.S. economist at BNP Paribas SA in New York. BNP is the top-ranked forecaster of CPI in the past two years, according to data compiled by Bloomberg. “We probably have further weakness to see as retailers adjust prices to reduce the stockpiles that we know boosted growth.”

American Eagle Outfitters Inc. (AEO) has joined other retailers in offering more discounts to attract cash-strapped American shoppers this holiday season, underscoring limited cost pressures. Fed policy makers, who begin a two-day meeting today, are debating the outlook for inflation and the economy as they consider reducing $85 billion of monthly bond purchases designed to support the expansion.

Estimates for the consumer-price index ranged from a drop of 0.1 percent to a gain of 0.2 percent, according to the Bloomberg survey. Economists projected the core gauge would also increase 0.1 percent.

Stock-index futures rose, following yesterday’s gain for the Standard & Poor’s 500 Index, as investors weighed the inflation data for clues on the outcome of the Fed meeting. The contract on the S&P 500 expiring in March climbed 0.1 percent to 1,782.2 at 8:37 a.m. in New York.

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