On Wednesday, MSNBC posted the March Inflation Numbers. As any consumer can tell you, inflation is still and issue.
The article reports:
- The consumer price index, a key inflation gauge, rose 3.5% in March, higher than expectations and marking an acceleration for inflation.
- Shelter and energy costs drove the increase. Energy rose 1.1% after increasing 2.3% in February, while shelter costs were higher by 0.4% on the month and up 5.7% from a year ago.
- Following the report, traders pushed the first expected rate cut out to September, according to CME Group calculations.
The article notes:
Stocks slumped after the report while Treasury yields spiked higher.
Shelter and energy costs drove the increase on the all-items index.
Energy rose 1.1% after climbing 2.3% in February, while shelter costs, which make up about one-third of the weighting in the CPI, were higher by 0.4% on the month and up 5.7% from a year ago. Expectations for shelter-related costs to decelerate through the year have been central to the Fed’s thesis that inflation will cool enough to allow for interest rate cuts.
Food prices increased just 0.1% on the month and were up 2.2% on a year-over-year basis. There were some big gains within the food category, however.
Elsewhere, used vehicle prices fell 1.1% and medical care services prices rose 0.6%.
The past three years or so have not been a good time for most Americans. Inflation has increased the cost of simply maintaining an average lifestyle. It will be interesting to see if inflation can be brought under control by November and if people will vote their pocketbooks.