February inflation report expected to show another 'strong' monthly increase
Former Kansas City Federal Reserve Bank President Thomas Hoenig reacts to Jerome Powell saying the Fed is not ready to start cutting rates on 'Cavuto: Coast to Coast.'
A closely watched inflation report due Tuesday is expected to show that progress in fighting price pressures within the economy slowed again in February.
Economists expect the consumer price index, which measures a range of goods that includes gasoline, health care, groceries and rent, to show that prices rose 3.1% in February – unchanged from the previous month.
On a monthly basis, inflation is seen rising 0.4%, which is higher than the 0.3% figure recorded in January, thanks to an uptick in energy prices.
«We expect [the report] to show another strong monthly increase,» said Brian Rose, senior U.S. economist at UBS Global Wealth Management.
AMERICANS EXPECT HIGH INFLATION TO LINGER IN LATEST NEW YORK FED SURVEY
Other parts of the report are also expected to point to a slower retreat in inflation. Core prices, which exclude the more volatile measurements of food and energy, are projected to climb 0.3%, or 3.7% annually. Those figures are down slightly from the 0.4% monthly figure and 3.9% headline gain in January, suggesting that underlying price pressures remain strong.
The Federal Reserve's target rate is 2%.
«The CPI index likely ran hot in February on higher gasoline prices, but core inflation likely slowed further as car prices fell and rent increases moderated,» said Bill Adams, chief economist for Comerica Bank.
401(K) HARDSHIP WITHDRAWALS ARE SURGING AS HIGH INFLATION SQUEEZES AMERICANS
A customer visits a supermarket in San Mateo, California, on Dec. 12, 2023. (Photo by Li Jianguo/Xinhua via Getty Images / Getty Images)
The central bank is
Read more on foxbusiness.com
