(Bloomberg) -- A monthly US government report on consumer prices due Tuesday is set to show slower progress toward the Federal Reserve’s 2% inflation target, keeping the central bank biased toward more tightening, according to Bloomberg Economics.

The figures are set to show the consumer price index excluding food and energy rose 0.3% for a second straight month in October, leaving the year-over-year rate unchanged at 4.1%, Bloomberg economists Anna Wong and Stuart Paul said Monday in a preview of the report.

“After showing encouraging progress this summer, disinflation in year-over-year core CPI likely stalled, while the monthly pace has been creeping up toward something more consistent with an annualized inflation pace of 3%-4% than 2%,” Wong and Paul said.

“Officials most likely will leave open the possibility of future rate hikes as long as core CPI is running at the current monthly pace.”

Read More: US PREVIEW: Disinflation in Core CPI Likely Stalled in October

Inflation has been receding this year after peaking in 2022 at the highest levels since the early 1980s. Better-than-expected data on consumer prices over the last several months helped build consensus for a pause in the Fed’s tightening campaign at each of the central bank’s last two policy meetings.

Slower progress toward the 2% inflation target will raise concerns that more interest-rate increases may be needed, even with the central bank’s benchmark rate at a 22-year high.

Investors currently put the chances of another rate hike at either of the next two policy meetings at roughly one-in-four, according to futures markets.

“While disinflation in core CPI has pretty much stalled, the Fed is unlikely to change its wait-and-see attitude toward rate hikes — especially with the next few months likely to provide additional evidence that the labor market is cooling more rapidly,” Wong and Paul said.

The Bloomberg Economics projections are in line with the median responses in a Bloomberg survey of outside forecasters.

Read More: US CPI Is Seen Getting a Nudge From Swing in Health Insurance

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