Fed's Musalem says inflation will go up on commodity price shock

NEW YORK, April 1 (Reuters) - Federal Reserve Bank of St. Louis President Alberto Musalem said Wednesday the energy shock tied to the Iran war will definitely impact overall inflation and will likely hit core price pressures as well.

“My expectation is that headline inflation is going to be affected one for one” by the surge in commodity prices “and there's going to be a period of high headline inflation,” Musalem said at an event held by the American Enterprise Institute in Washington. “There will be some pass through to core inflation also, and I'll be very closely monitoring just how much that is and how correlated the two are,” he said.