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With markets on edge over the direction of inflation , a report Thursday that often flies under the economic radar is likely to take on more importance. The Commerce Department’s measure of personal consumption expenditures prices could add to evidence that inflation is stickier than some economists and policymakers had thought. January’s reading is expected to show the cost of living still above the Federal Reserve’s target, despite nearly two years of tight policy aimed at arresting the trend. A popular measure among central bank officials, the so-called PCE often takes a back seat in importance among investors to the monthly consumer price index readings. But maybe not this time. “The number is going to be hot,” said Mark Zandi, chief economist at Moody’s Analytics. “Inflation doesn’t move in a straight line. It zigs and it zags, and it zagged in January.” Zandi expects the PCE price index to show a 0.4% increase for the month on both …
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