Monthly data offers latest illustration that prices remain elevated, particularly in the food, auto and hospital care industries.
Consumer prices climbed again last month, as inflation remains a persistent thorn in the side of the Federal Reserve and for President Joe Biden’s re-election campaign, both of which are counting on a steady easing of price pressures this year.
Prices rose 0.4% from January to February, a pickup from the previous month’s figure of 0.3%. Compared with 12 months earlier, consumer prices rose 3.2% last month, faster than January’s 3.1% annual pace, the government reported on Tuesday.
Excluding volatile food and energy prices, so called “core” prices also climbed 0.4% from January to February, matching the previous month’s increase at a faster pace than is consistent with the Fed’s 2% target. Core inflation is watched especially closely because it typically provides a better read of where inflation is likely headed.
“Unless inflation starts to drop and come in below forecast, most notably CPI and Core PCE, then we expect the Fed to take a patient and measured approach to any potential rate cuts. If there is any notable weakness in the jobs market, that would increase the chance of a Fed rate cut by June,” stated Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report, in a note.
