Fed's favorite inflation gauge rises faster than expected in March
Market Rebellion co-founder Pete Najarian discusses delayed rate cuts by the Fed, inflation and U.S. markets.
An inflation measure closely watched by the Federal Reserve rose faster than expected in March as high prices continue to weigh on millions of Americans.
The personal consumption expenditures index showed that consumer prices rose 0.3% from the previous month, according to the Labor Department, in line with expectations. On an annual basis, prices climbed 2.7% — higher than both the 2.6% forecast from LSEG economists and the 2.5% reading recorded the previous month.
In another sign that progress on inflation is stalling, core prices — which strip out the more volatile measurements of food and energy — climbed 0.3% from the previous month and 2.8% from the previous year. Those figures are both higher than what was seen the previous month.
«Progress on inflation certainly appears stalled. Prices grew in March at the same relative pace as in February,» said Elizabeth Renter, data analyst at NerdWallet. «The good news is this: They didn’t further accelerate. The not great news: If you’re waiting for the Fed to cut rates, and you still haven’t pulled up a seat, get comfortable.»
RAISING A CHILD IN THE US IS GETTING EVEN MORE EXPENSIVE
A view of a grocery store in Washington, D.C. on Feb. 14. (Mostafa Bassim/Anadolu via Getty Images / Getty Images)
While the Fed is targeting the PCE headline figure as it tries to wrestle consumer prices back to 2%, Chair Jerome Powell previously told reporters that core data is actually a better indicator of inflation. Both the core and headline numbers point to inflation that is still running well above the Fed’s preferred 2% target.
Prices for goods climbed 0.1% over the course of
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