EBIZ - Price Hikes In Retail Goods Spur U.S. Inflation - And The Fed Is Watching
- The January U.S. CPI report indicated a higher pace of inflation than many observers expected. The price level of the core CPI advanced 0.6% month-over-month, largely driven by price hikes in retail goods.
- While we believe the CPI report increases the probability of the U.S. Federal Reserve hiking its policy rate by 50 bps in March, we still think the Fed would prefer to hike sequentially at consecutive meetings instead of making a more abrupt adjustment.
- Household furnishings, apparel, and recreational goods all saw notable price jumps in January as retailers passed on higher input costs.
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Price Hikes In Retail Goods Spur U.S. Inflation - And The Fed Is Watching