Fed’s Barkin Says CPI Data Show Inflation Headed Toward 2% Goal

Federal Reserve Bank of Richmond President Tom Barkin said fresh data show continued progress on lowering inflation toward the central bank’s 2% goal, but that interest rates should remain restrictive.

New consumer-price data “continues the story we’ve been on, which is that inflation is coming down toward target,” Barkin told reporters following an event in Annapolis, Maryland. “But there’s still work to do.”

Tom Barkin, president of the Federal Reserve Bank of Richmond

Photographer: Christopher Goodney/Bloomberg

Barkin’s comments follow figures released earlier Wednesday that showed the so-called core consumer price index, which excludes food and energy costs, increased a less-than-forecast 0.2% in December. That came after a 0.3% rise for four ...