U.S. consumer prices increased by the most in more than a year in March. boosted by increases in the costs of food, gasoline and rents. That was the biggest advance since January 2018 and followed a 0.2% gain in February. but underlying inflation remained gentle against the backdrop of slowing domestic and global economic growth. this supports the FEDS decision to suspend its rate hikes in 2019. If you remove the volatile energy and food prices then Prices only increased 0.1%. Im curious if this trend of increasing prices, although small continues, will make the FED revisit its decision to suspend hikes and start slowly increasing rates.
https://www.cnbc.com/2019/04/10/consumer-price-index-march-2019.html
2 comments:
The economic indicator of CPI has been heavily discussed throughout the blogging period thus far. One positive is that it continues to increase rather than go down, which indicates that consumers are far more comfortable within our economy. I posted an article that talked about how the economy is getting better worldwide, I wonder if this has anything to do with that or if it is unrelated. In any case, this continues to be a positive within our economy and I hope it continues in the future.
The steady increase in prices can be good for the future of business and the government, however higher prices tend to make it more expensive for households to maintain the same standard of living. The rise in inflation is still moderate. This increase in prices can help with future employment as well as economic growth. However, if the inflation rates continue to rise it can lead to hyperinflation leading to more problems in the economy.
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