Nick Timiraos, chief economics correspondent for the Wall Street Journal, said central banks need “credible justification” to start cutting rates.
Inflation accelerated for the third straight month in March due to soaring gasoline and rent prices, underscoring the difficulty of containing domestic price pressures. economy.
The Labor Department said Wednesday that the consumer price index, which measures the price of daily necessities including gasoline, food and rent, rose by 0.4.% From last month to March. Prices rose 3.5% year-on-year, exceeding the 3.2% recorded in February.
Both of these numbers exceeded LSEG economists’ expectations for a 0.3% month-on-month increase and a 3.2% headline profit.
Elsewhere in the report, inflation is slow to recede. Core prices, which exclude volatile indicators such as food and energy, rose 0.4%, the same as in January and February. The annual rate of increase was 3.8%. These numbers are also higher than expected.
Overall, the report shows that while inflation has fallen significantly from its peak of 9.1%, it remains well above the Federal Reserve’s 2% target.
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.
This is a developing story. Please check back for the latest information.
