QI Research CEO and Chief Strategist Daniel DiMartino Booth responds to the ‘Apollo’ article claiming the Federal Reserve will not cut interest rates in 2024.
Inflation unexpectedly rose in February due to soaring gasoline and rent prices, highlighting the challenge of containing price pressures in the economy.
The Ministry of Labor announced on Tuesday that the consumer price index, which comprehensively measures the prices of daily necessities such as gasoline, food and rent, rose 0.3% in February from the previous month. Prices increased by 3.2% compared to the same period last year.
Both of these figures were higher than the 0.3% month-on-month increase recorded in January and the 3.1% increase on an overall basis.
Elsewhere in the report, inflation is slow to recede. Core prices, which exclude more volatile food and energy measures, rose 0.4%, the same as in January. The annual rate of increase was 3.8%. Both of these numbers are slightly higher than estimates.
Overall, the report shows that inflation has fallen significantly from its peak of 9.1%, but remains above the Federal Reserve’s 2% target.
Why are groceries still so expensive?
caused by high inflation severe financial pressure Most American households are being forced to pay more for everyday necessities like food and rent. The burden falls disproportionately on low-income Americans, whose already maxed-out paychecks are heavily affected by price fluctuations.
A customer shops at a grocery store on February 13, 2024 in Chicago, Illinois. (Photo by Scott Olson/Getty Images/Getty Images)
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