Latest US inflation report may provide clues to future path of prices and interest rates

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — It’s perhaps the biggest question swirling around the U.S. economy right now: Is inflation stuck at an elevated level — or will last year’s steady decline resume sometime soon? On Wednesday, the government will issue the latest monthly inflation report, a set of figures that will be scrutinized by economists, Wall Street traders and Federal Reserve officials for any insight into that question. Analysts estimate that year-over-year inflation dipped from 3.5% in March to 3.4% in April. Measured from March to April, consumer prices are expected to have risen 0.4%, the same as in the previous month.