Inflation in the United States accelerated modestly in February, increasing by 0.4% on the month and by 6% on a year-ago basis. It was a similar reading in the core number that excludes food and energy, with prices in that sector rising by 0.5% on the month and by 5.5% compared to a year ago, ... READ MORE >
Consumer Price Index
Inflation grew faster in January, bolstering the case for more rate hikes
Inflation accelerated in January, bolstering the case for the Federal Reserve to continue raising interest rates at its next two meetings. January’s Consumer Price Index increased by 0.5% on the month, rising from a 0.1% increase in December, and by 6.4% on a 12-month basis, the Bureau of ... READ MORE >
U.S. inflation eases in December, supporting a moderation in Fed rate hikes
A third straight month of improvement in top-line inflation data implies that conditions are moving in the direction where the Federal Reserve can consider further moderation in the pace of its rate hike campaign to restore price stability. The tone and tenor of the data imply an underlying ... READ MORE >
November CPI: Easing inflation amid surging housing costs poses dilemma for Fed
On first sight, the U.S. November consumer price index would suggest relief among policymakers following the second straight inflation report that came in lower than expected. With the top-line figure easing to a 7.1% annual increase and core inflation falling to 6% on a year-ago basis, the data ... READ MORE >
Producer price inflation hotter than expected ahead of Fed’s meeting
Wholesale prices grew faster than expected in November, driven mostly by services which have become the new focus of the Federal Reserve in its fight against inflation. The producer price index for final demand rose by 0.3% in November and by 7.4% year-over-year, the Bureau of Labor Statistics reported ... READ MORE >
U.S. October CPI: Inflation still high, but relief on the horizon
Inflation in the U.S. economy is approaching an inflection point where the central bank can begin considering a pause in its efforts to restore price stability and households can begin seeing possible relief from a deterioration in real income. The October consumer price index, which rose by 0.4% ... READ MORE >
Inflation remains hot, sticky and elevated, implying another supersized rate hike
Both top-line and core inflation remain hot, sticky and elevated, which implies that the path of monetary policy demands another supersized rate increase of 75 basis points at the Federal Reserve’s November meeting. The September Consumer Price Index increased by 0.4% on the month and was up by 8.2% on ... READ MORE >
U.S. August CPI: Core inflation arrives hot even as gas prices fall
Premature calls for the Federal Reserve to pause or pivot on its campaign to tame inflation should be politely dismissed given the 0.1% increase in top-line inflation in August. That gain translates into a 8.3% year-over-year increase in the headline number, according to government data released ... READ MORE >
How high must unemployment rise to tame inflation?
Restoring price stability is now the paramount policy goal at the Federal Reserve. Chairman Jerome Powell went out of his way on Friday to point out the lessons of the high inflation in the 1970s and 1980s, and the sacrifice it took to wring it out of the economy after years of delays. "Our aim is to ... READ MORE >
Latest jobless claims and producer inflation show upside surprises
New filings for jobless benefits last week rose by 3.8% to 244,000—the highest level since November, according to government data released Thursday. The steady increase in new jobless claims, which are a proxy for layoffs, were in line with hiring freezes and layoff announcements coming from the ... READ MORE >