U.S. official sees moderation in goods and services inflation in months ahead

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WASHINGTON – Friday’s consumer price data is likely to reflect the continued impact that Russia’s invasion of Ukraine is having on food and energy prices, but U.S. goods and services inflation should moderate in the months ahead, a senior U.S. official said on Thursday.

“Despite these disruptions, we continue to believe that the economy can and is transitioning from what has been a historic recovery to stable, steady growth with inflation pressures moderating,” the official told reporters.

The official said air fares, which were up more than 30% in the last months, were expected to increase quite significantly again, showing the spillover impact of higher energy prices on components of core inflation.

(Reporting by Andrea Shalal; Editing by Chris Reese)