Consumer inflation in the US remained persistently high last month, driven by factors such as gas prices, rents, and auto insurance. The Federal Reserve may be hesitant to cut interest rates as it evaluates the situation.
WASHINGTON — Consumer inflation remained persistently high last month, boosted by gas, rents, auto insurance and other items, the government said Wednesday in a report that will likely give pause to the Federal Reserve as it weighs when and by how much to cut interest rates this year.Prices outside the volatile food and energy categories rose 0.4% from February to March, the same accelerated pace as in the previous month. Measured from a year earlier, these core prices were up 3.
The March inflation report “pours cold water on the view that the faster readings in January and February simply represented the start of new-year price increases that were not likely to persist,” Kathy Bostjancic, chief economist at Nationwide, said in a research note.
Overall consumer prices rose 0.4% from February to March, the same as in the previous month. Compared with 12 months earlier, prices rose 3.5%, up from a year-over-year figure of 3.2% in February. The inflation surge that followed the pandemic jacked up the costs of food, gas, rent and many other items. Though inflation has since plummeted from its peak of 9.1% in June 2022, average prices are still well above where they were before the pandemic.
Such signs of economic vigor have also complicated the prospect of Fed rate cuts, which typically occur when the economy stumbles. With growth healthy, some economists have asked, why cut rates at all? A strong economy also means that the Fed’s policymakers can take their time to consider when and by how much to reduce borrowing costs for consumers and businesses.
Environmentalists call this project ‘the worst ridgeline development in Northern California’ — and just got it delayed
Consumer Inflation High Gas Prices Rents Auto Insurance Federal Reserve Interest Rates
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Consumer Inflation Remains High, Raising Concerns for Federal ReserveConsumer inflation remained persistently high last month, driven by gas, rents, auto insurance, and other items. The Federal Reserve will likely be cautious in deciding when and how much to cut interest rates this year.
Read more »
Consumer Price Index Preview: Accelerating inflation could hurt hopes for Federal Reserve rate cutsThe high-impact US Consumer Price Index (CPI) inflation data for March will be published by the Bureau of Labor Statistics (BLS) on Wednesday at 12:30 GMT.
Read more »
US inflation likely stayed elevated last month as Federal Reserve looks toward eventual rate cutsConsumer prices likely rose last month at a pace that would exceed the Federal Reserve’s inflation target, underscoring why the Fed is being cautious as it considers when to cut interest rates and suggesting that inflation will remain a potent issue in...
Read more »
US core PCE inflation Preview: Federal Reserve preferred gauge set to decelerate on month in FebruaryThe core Personal Consumption Expenditures (PCE) Price Index, the US Federal Reserve’s (Fed) preferred inflation measure, will be published on Friday by the US Bureau of Economic Analysis (BEA) at 12:30 GMT.
Read more »
Federal Reserve Considers Cutting Interest Rates Amid Inflation ConcernsThe Federal Reserve left the door open to cutting interest rates in the near future at the conclusion of its March meeting as officials try to walk the fine line of bringing inflation down without inducing a recession. Fed chairman Jerome Powell said the underlying data is still positive that inflation is moving in the right direction to start cutting rates this year. Projections also showed the central bank is still planning on three cuts this year.
Read more »
Federal Reserve still foresees 3 interest rate cuts this year despite bump in inflationFederal Reserve officials signaled that they still expect to cut their key interest rate three times in 2024 despite signs that inflation remained elevated at the start of the year.
Read more »