RTX - February CPI: Back-To-Back Hot Inflation May Extend The Fed's Pause
2024-03-12 12:25:18 ET
Summary
- The path to reaching the 2% inflation target is facing resistance, as inflationary pressures continue to rise.
- The causes of inflation have evolved since the pandemic, with durable goods experiencing deflation while services and housing inflation remain moderate.
- While rate hikes seem to still be off the table, the Fed may hold off on cuts for a bit longer.
Earlier this morning, the Bureau of Labor Statistics released the Consumer Price Index , which measures inflation, for the month of February. The report surprised markets in that (once again) inflation came in a little higher than expected. On a month-over-month basis, inflation and core inflation (which excludes food and energy) grew at 0.4%. Headline inflation on a year-over-year basis now stands at 3.2%, while core inflation is 3.8%. While the trend of disinflation is continuing, both indicators are still far from the 2% inflation target and may give the Federal Reserve pause (literally and figuratively) in its next meeting....
February CPI: Back-To-Back Hot Inflation May Extend The Fed's Pause