Consumer 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.
Updated: 1 minute agoGas prices are seen at a gas station in Riverwoods, Ill., Monday, April 1, 2024. On Wednesday, the Labor Department issued its report on inflation at the consumer level in March.
The March figures, the third straight month of inflation readings well above the Fed’s target, provide concerning evidence that inflation is stuck at an elevated level after having steadily dropped in the second half of 2023. The higher inflation measures threaten to torpedo the prospect of multiple interest rate cuts this year.
On Wall Street, traders sent stock futures tumbling and bond yields rising, reflecting fear that the Fed may delay interest rate cuts indefinitely. Grocery costs, though, were unchanged last month and are 2.2% higher than they were a year ago, providing some relief to consumers after the huge spikes in food prices in 2022 and early 2023.
Last month, employers ramped up hiring, and the unemployment rate fell to a low 3.8% from 3.9%. A report on manufacturing also showed that factory output expanded after more than a year of contraction.
Consumer Inflation Gas Prices Rents Auto Insurance Federal Reserve Interest Rates
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