Inflation is running tame, or at least within acceptable guidelines of inflationary targets. The Labor Department has reported that February consumer prices rose by +0.4% on the headline data. The Core CPI which eliminates food and energy rose by a mere +0.1%.
The expectations we had tracked were +0.4% on the headline and +0.2% on the core rate of inflation. These are month-over-month figures.
On an year-over-year basis, the headline inflation is up 2.9% and the core inflation was up 2.2%. After yesterday’s data on wholesale inflation from the Producer Price Index today’s data should not really be a surprise.
It generally takes a few months of inflation at the wholesale level to be fully passed down to the consumer level. There are implied lags from the time of production and contracted prices that factor in, plus many retailers just find that they have to eat higher costs to keep the prices lower for consumers.
JON C. OGG
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
