A key inflation gauge tracked by Fed remained high in March

Some Fed officials are concerned that core inflation hasn’t declined much since reaching 4.7% in July.

The increase suggested that many businesses are still feeling pressure to raise pay to find and retain workers. While good for employees, that trend could help accelerate inflation if companies raise their prices to cover their higher labor costs. The PCE price index also seeks to account for changes in how people shop when inflation jumps. As a result, it can capture emerging trends — when, for example, consumers shift away from pricey national brands in favor of less expensive store brands.

As a result, the Fed is poised to announce another interest rate hike after its policy meeting next week. The likely quarter-point rise in its benchmark rate would raise it to about 5.1%, the highest level in 17 years.

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A key inflation gauge tracked by Fed remained high in MarchA key index of underlying inflation that is closely followed by the Federal Reserve remained elevated last month, keeping the Fed on track to raise interest rates next week for the 10th time since March of last year. The index, which excludes volatile food and energy costs to capture “core” prices, rose 0.3% from February to March and 4.6% from a year earlier — still far above the Fed’s 2% target rate. Some Fed officials are concerned that core inflation hasn’t declined much since reaching 4.7% in July.
Source: AP - 🏆 728. / 51 Read more »

A key inflation gauge tracked by Fed remained high in MarchThe index, which excludes volatile food and energy costs to capture “core” prices, rose 0.3% from February to March and 4.6% from a year earlier — still far above the Fed’s 2% target rate.
Source: wsfa12news - 🏆 338. / 59 Read more »