US Inflation Tops Forecasts, Reinforcing Fed's Cautious Approach

  • 📰 Moneyweb
  • ⏱ Reading Time:
  • 28 sec. here
  • 11 min. at publisher
  • 📊 Quality Score:
  • News: 46%
  • Publisher: 77%

Economy News

US Inflation,Federal Reserve,Interest Rates

Underlying US inflation exceeded expectations in February, leading the Federal Reserve to maintain a cautious stance on interest rate cuts. The core consumer price index, which excludes food and energy costs, rose 0.4% from January and 3.8% from a year ago. Economists consider the core gauge a better indicator of underlying inflation than the overall CPI. The report suggests that inflation is proving stubborn, causing central bankers to be cautious about easing policy too soon. Some officials have expressed the need for a broader pullback in prices before considering rate cuts.

Underlying US inflation topped forecasts for a second month in February, reinforcing the Federal Reserve’s cautious approach to cutting interest rates. The so-called core consumer price index, which excludes food and energy costs, increased 0.4% from January, according to government data out Tuesday. From a year ago, it advanced 3.8%. Economists see the core gauge as a better indicator of underlying inflation than the overall CPI. That measure climbed 0.4% from January and 3.

2% from a year ago, boosted by gasoline prices, Bureau of Labour Statistics figures showed. After a brisk January reading, the report adds to evidence that inflation is proving stubborn, which is keeping central bankers wary of easing policy too soon. Chair Jerome Powell suggested last week that he and his colleagues are getting close to the level of confidence they need to start lowering rates, but some officials have expressed they’d like to see a broader pullback in prices first. Stock futures and Treasury yields fluctuated after the releas

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in ENERGY

Energy Energy Latest News, Energy Energy Headlines