Good news: You can get a cheap hotel! Bad news: You can't afford the airfare to fly anymore. Today's inflation news, explained 👇🏼
U.S. consumer prices have increased solidly in the past few months on items such as food, rent, cars and other goods as inflation has risen to a level not seen in 30 years. | Mario Tama/Getty ImagesInflation hit another four-decade high in January and showed little sign of slowing down, suggesting that surging prices will continue to dog President Joe Biden’s economy.
The Labor Department’s report that consumer prices rose a higher-than-expected 0.6 percent for the second month in a row increased speculation in financial markets that the Federal Reserve might act more aggressively in its campaign of interest rate increases, which are expected to begin next month. “Today’s report was not encouraging, but it’s premature to conclude that the Fed will move [up rates by half a percentage point] next month,” said Roberto Perli, head of global policy research at Cornerstone Macro. “Even if the next report were to show strong price pressures, I think the Fed will be wary to make an aggressive first step in order not to risk destabilizing markets.”
The worse number for both the Fed and the White House is that inflation rose 0.6 percent from December to January, because that gives us a better sense of what’s happening now rather than what was going on a year ago. That’s the same pace it grew the month before, meaning that these price spikes don’t seem to be slowing down consistently .
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Biden Touts Wage Growth, Slower Inflation Forecasts After Another Surge in PricesBiden touted wages and forecasts for weaker price growth even after the consumer inflation report showed prices are rising at their fastest clip in 40 years.
Read more »
Fed Bullard is concerned about the January inflation print, Fed could be open to an inter-meeting increase.Federal Reserve Bullard says that he favours the first half-point rate hike since 2000 and defers to chair Jerome Powell on a potential for a 50bps ra
Read more »
Biden stresses need to lower prescription drug costs in fight against US inflationPresident Biden visited Culpeper, Va., to call attention to the “unacceptable” cost of medications on the heels of a dire U.S. inflation report.
Read more »
US Treasury yields dwindle, S&P 500 Futures ignore Wall Street gains amid inflation anxietyUS Treasury yields dwindle, S&P 500 Futures ignore Wall Street gains amid inflation anxiety By anilpanchal7 RiskAppetite Inflation YieldCurve Equities Fed
Read more »
USD/CAD steadies below 1.2700 amid softer oil prices, cautious mood ahead of US inflationUSD/CAD remains pressured around 1.2675 while portraying the market’s indecision heading into Thursday’s European session. In addition to the anxiety
Read more »
EUR/USD grinds higher past-1.1400 as USD tracks softer yields, inflation eyedEUR/USD struggles to keep intraday gains, recently taking rounds to 1.1430 during early Wednesday morning in Europe. Even so, the major currency pair
Read more »