US inflation drifting below Fed's 2% goal; 2019 rate hike path less certain

While households benefit from contained inflation and will find comfort in lower fuel costs, the Fed tends to be wary of subdued longer-term price expectations taking hold

Just when you thought US inflation was stabilising around the Federal Reserve's 2 per cent goal, it's getting pulled back down again.   

In contrast to the resounding success on their maximum-employment target, policy makers may have to wait a while before declaring victory on inflation as recent reports show price pressures are cooling off instead.

The slowdown -- covering the Fed's preferred price gauge, surveys of consumers and a poll of manufacturers -- is hard to ignore at a time central bank officials emphasise that their decisions will be increasingly data dependent. The path of 2019 interest-rate hikes looks less certain