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Coming In Hot: U.S. Inflation Rises 3.5%, Prices for Everyday Consumer Items Remain High; Report

By Eric Bolling Staff

Young Asian woman managing personal banking and finance. Planning budget and calculating expenses with digital tablet while going through various expense receipts at home after shopping. Home finances. Home budgeting. Banking and finance concept

The Labor Department released a report Wednesday morning showing that inflation continues to climb as prices for everyday items like food and gas remain stubbornly high.

From NEWSMAX:

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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 3.8%, unchanged from the year-over-year rise in February. The Fed closely tracks core prices because they tend to provide a good read of where inflation is headed.

The March figures, the third straight month of inflation readings well above the Fed’s 2% target, threaten to torpedo the prospect of multiple interest rate cuts this year. Fed officials have recently made clear that with the economy healthy, they’re in no rush to cut their benchmark rate despite their earlier projections that they would reduce rates three times this year.

Chair Jerome Powell has stressed that the Fed’s policymakers need more confidence that inflation is steadily slowing to the Fed’s 2% target. Powell’s stance has elevated the profile of the monthly inflation reports, which could determine when and by how much — or even whether — the Fed will reduce its key rate this year. Rate cuts would lead, over time, to lower borrowing costs for businesses and consumers and could also fuel a stock market rally.

Overall consumer prices rose 0.4% from February to March, also the same as the previous month. Compared with 12 months earlier, prices rose 3.5%, up from a year-over-year figure of 3.2% in February.

Even CNN and CNBC were having trouble putting a positive spin on the report.

 

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