Inflation is up more than expected over February, as the FEDs PCE numbers just came out this morning. The CPE index was up 0.4%, the largest month over month rise since January 2024. Analysts were looking more in the range of 0.3% and 2.7% respectively. Housing prices were a little slower in the period, rising 0.3%.
The Fed seems like it will be patient with the recent inflationary numbers, as they are not super high over what was expected. They are still expected to wait until September to cut the interest rate, and it is not expected that the numbers will affect that decision. With tariffs beginning to come into effect, some believe that the increased prices from imports are contributing to a slight bump in inflation. Analysts are not expecting this inflation to be long lasting either.
https://www.cnbc.com/2025/03/28/pce-inflation-february-2025-.html
1 comment:
The Fed seems unfazed by the slight inflation uptick, sticking to its September rate cut plan. It will be interesting to see if tariffs push prices higher in the coming months.
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