Friday’s report from the Commerce Department showed that consumer prices rose 0.3% from January to February, down from a 0.6% increase from December to January. Measured year-over-year, prices rose 5%, slower than the 5.3% annual increase in January.Excluding volatile food and energy prices, so-called core inflation rose 0.3% from January and 4.6% from a year earlier. Both were slowdowns from the previous month.
Job openings remain plentiful, hiring is strong, layoffs are still low and the unemployment rate is barely above a half-century low. A result has been upward pressure on wages, which have contributed to inflationary pressures. Even after having slowed, consumer prices are still posting year-over-year increases well above the Fed’s 2% target. Earlier this month, the Labor Department said its consumer price index rose 0.4% from January to February and 6% from February 2022.
At a news conference last week, Fed Chair Jerome Powell acknowledged that the uncertainties now overhanging small and midsize banks will likely cause tighter lending conditions. If banks do restrict lending in the coming months, Powell noted, it would probably slow the economy and perhaps act as the equivalent of a Fed rate hike.
“You look at this report and think, we’ve got to keep applying the brakes,″ Levy said. “The question is how much of March’s banking turmoil has already applied the brakes for them.’’“I can go get a $5 meal at Wendy’s, which isn’t even healthy, but that’s cheaper than buying the ingredients to make a meal at home,’’ said Jennifer Schultz of St. Joseph, Missouri.
Lol sure sure