Inflation increased 3.5% in March - ABC News
By: ABC News
Well crap..........
S E E D E D C O N T E N T
The fight to reduce inflation has struck a rough patch in recent months.
ByMax ZahnApril 10, 2024, 8:45 AM
Consumer prices rose 3.5% in March compared to a year ago, accelerating markedly from the previous month and reversing some of the progress achieved in a two-year fight to cool inflation, U.S. Bureau of Labor Statistics data showed. The finding matched economists' expectations.
Price increases have cooled dramatically from a peak of about 9%, but inflation still stands more than a percentage point higher than the Federal Reserve's target rate of 2%.
A spike in housing and gasoline prices at the outset of this year has helped prolong the nation's bout of elevated inflation. Meanwhile, economic performance has been robust, boosting consumer demand and putting upward pressure on prices.
The latest finding indicated an uptick from the 3.2% annual inflation rate recorded in February.
Core inflation -- a closely watched measure that strips out volatile food and energy prices -- increased 3.8% over the year ending in March, holding steady from the previous month, the data showed.
More than half of the monthly increase in consumer prices owed to an uptick in gasoline and housing costs, the BLS said.
Offering relief for households, the prices of some grocery staples dropped over the year ending in March. The prices of breakfast cereal, rice and pasta each fell more than a percentage point over that period.
Prices also dropped more than 4% for breakfast sausage and ham over the past year. Apple prices fell more than 10% over that period.
Beef prices, however, increased at more than double the pace of overall inflation over the past year.
At a meeting last month, the Fed opted to keep rates highly elevated in response to stubborn inflation. The Fed Funds rate remains between 5.25% and 5.5%, matching its highest level since 2001.
"On inflation, it's too soon to say whether the recent readings represent more than just a bump," Fed Chair Jerome Powell told a business conference at Stanford University last week.
"Given the strength of the economy and progress on inflation so far, we have time to let the incoming data guide our decisions on policy," Powell added.
The Fed said last month that it still intends to make three interest rate cuts this year.
Interest rate cuts would lower borrowing costs for consumers and businesses, potentially triggering a burst of economic activity through greater household spending and company investment.
But the Fed risks a rebound of inflation if it cuts interest rates too quickly, since stronger consumer demand could lead to an acceleration of price increases.
Federal Reserve Board Chair Jerome Powell speaks at the Business, Government and Society Forum at Stanford University in Stanford, Calif., April 3, 2024.Jeff Chiu/AP
In recent days, some business leaders and policymakers have voiced concern about the outlook for inflation.
In his annual shareholder letter on Monday, JPMorgan Chase CEO Jamie Dimon warned that a host of factors, including government spending and global trading shocks, could make the final leg of inflation's path down to normal levels much more difficult than many observers expect.
Speaking at a meeting of the Shadow Open Market Committee in New York City last week, Fed Governor Michelle Bowman said she sees "a number of upside risks to inflation."
The rough patch for inflation in recent months has coincided with strong economic performance, despite persistently high interest rates meant to slow economic activity.
Employers hired 303,000 workers last month, blowing past economist expectations of 214,000 jobs added, according to a report from the U.S. Bureau of Labor Statistics on Friday.
The hiring far surpassed the average number of jobs added each month over the previous year, suggesting an acceleration in performance for one of the key metrics used to assess the nation's economic health.
Last week, Powell referred to surveys of consumer and business sentiment that suggest inflation is widely expected to return to normal levels.
"The public does believe -- and it's a good thing, because it's true -- that inflation will go back down to 2%," Powell said. "That's very reassuring but that's partly because of the very strong action we took and also because of our ongoing commitment to actually return inflation to 2% over time."
"And that is our commitment," Powell added.
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Rough patch? More like a washboard dirt road...................
How can you possible say Bidens policies aren't working? 4 years ago my gas tank only held 30 dollars worth of gas, now it holds 75 dollars worth.
LOL.
I cringe every time I hear "Bidenomics", but which policies are specifically not working? I don't give any Administration credit for market US forces.
Normally i would say the Speaker has more influence on domestic policy than the President, which has more control of foreign policy, but this administration has done more on the domestic front than most. IMO,
Immigration which is normally a foreign policy this administration has created a domestic issue do to their mismanagement, and now this piece of crap is saying he can fix it with a EO on Univision.
Also his insane green policies are effecting the marketplace, he needs to let the market drive this.
You shouldn’t cringe. Administration policy can and does affect inflation. The biggest way this can happen is increasing the money supply faster than output.
Make no mistake. The current Admin has done little to bring inflation into check. Biden should kiss Powell on the lips. Without his aggressive rate increases we would be in double digit inflation right now.
No doubt about it.
This has nothing to do with our economic issues.
How? Other than China trying to flood the market with cheap solar panels what's going on as you see it?
I don't see the Biden Admin printing money.
I don't. It's not his job to do so, even were he to try and take credit. Again the issue keeping interest rates high is the robust spending (and wage growth), record low unemployment, and the lack of housing.
Meanwhile back in reality...
I see you failed to read the red box rules again.
Really, how can you honestly state this, You don't think the illegals are taking services from citizens? they aren't driving down wages in areas where they are? they aren't effecting housing? Can you really not see how importing millions in cheap labor can't effect economic conditions?
Forcing manufactures to produce electric vehicles is not cheap solar cells, mandating higher MPG standards is not cheap solar cells, demanding fuel efficiency for military vehicles degrades their effectiveness, because you need to lose weight(armor) or you lose power, speed and maneuverability.
No one pays much attention to meme-man's trolling
You don't think the cost of illegal immigrants is causing inflation?
Throwing an extra $150.7 billion (and rising each year Brandon is in office) into the system definitely causes inflation.
Also, left out is Brandon's attempt(s) to forgive college student debt (He is ignoring a Supreme Court ruling to try and buy votes for 2024). Since Congress never allocated the money to do this Brandon is definitely "printing money".
Between Brandon's two plans that would be $546 billion tossed onto the inflation fire. Congress hasn't approve a penny of it.
Then you haven’t been paying attention.
He supported adding 1.9 Trillion with the American Rescue Plan to the 2.9 trillion COVID Relief plan already approved. And it wasn’t really needed. The COVID Relief plan arguably was required as a response to the Pandemic.
He is printing money by increasing subsidies for things like Healthcare and Green Energy. Student loan forgiveness is front and center again as well. A pure money printing act if it happens. Paying for his porous border policy, etc, etc.
Pay attention, it’s out there …
And that effect that has on the economy as a whole is negatable.
That is not being done. That would be illegal. If you think any of the rest of that post is effecting the economy put up some links or numbers to support your position. It all sounds partisanly biased to me since I've not read anything from any economist (conservative or liberal that even comes close) to support this.
Partisan based as he claims as he defends Biden and ignores reality, 8 million people imported during Biden admin that is more people than there are in 48 states, and more than there are in 8 of the list populist states combined.
Immigrations costs would be there no matter who was sitting in the oval office. We can agree the costs are higher now because of a higher influx of people but those costs are negatable when taking in the whole big picture.
No, he's not "printing money". He's some cases he's using previously allocated money and in some cases (per Missouri) possibly stiffing loan companies. This new larger attempt hasn't happened yet so it has had NO influence on inflation.
2 years ago... Those costs have already been factored into the equation.
You're just tossing things out there without siting any contributing information. I want to know HOW those are effecting inflation. Tell me how...
I am NOT defending Biden. I'm trying to get you to prove your claims with some data. Perhaps I'll learn something if you did.
In 4 years Biden has imported 8 million people that is more than the combined population of 8 states,
That comment demonstrates a sophomoric understanding of Economics but I’m open to learn. Feel free to explain how that nearly 2 Trillion dollars has been “factored in” and what “equation” is being used
Be happy to explain it. Right after you explain yourself above.
Funny... We are talking about the current increase in inflation. It shouldn't take a rocket scientist to see that spending 2 years ago has already been accounted for prior to... you know... this year.
Your turn.
So you don't understand how spending works, all that money wasn't spent in those first 2 years as of January of 2023 there was still almost 100 billion left.
Maybe not. Can you show me when/where it was spent?
gao-23-106647.pdf
First, thank you for providing me some real numbers. Per your link it says on 1/1/23 2% remained unspent. How does that factor into this current rise in inflation? It wasn't long ago we were reading inflation was lowering, but now because spending is still high, but housing is still low we are seeing an increase. Where does that money 2023's Covid relief factor in?
That is the Federal government spending, they didn't spend it directly, they gave it to states and entities that then spend the money. so states and cities are still spending Covid money that they received on capitol improvement projects. the 1000 dollar unemployment bonus has been spent but other funds are still out there.
Speaking of Covid funds...........
So not Biden's policies per se? More like a whole bunch of interconnected issues with many fingers in many pies?
I hope they build new prisons to put on top of these people.
You will get nothing to support the allegations. Absolutely nothing.
lol …. You explained nothing. What “equation” was used? Etc …. Never mind, this appears to be way over your head. I suggest a good college Economics course.
That said, a simple explanation of inflation is that it is a compounding item. Like compound interest in your bank account but in the opposite direction. So money spent years ago can still negatively your spending power based on what inflation rates came before. While it’s good when inflation rates are down month to month or year to year, they still persist if positive and compound, negatively affecting your spending power. Just like is happening right now.
How many things that you spend money on have gone down is cost in the last two, three years ago? The answer is almost nothing. Most have gone up significantly faster because of inflation. Which demonstrates the compounding effect of inflation on numerous levels. Even though inflation has been down, costs are up. Inflation. That 5 trillion in government spending doesn’t just magically disappear.
Have you ever taken an Econ course?
For all the words you've typed you haven't explained anything either. You keep going off on tangents and deflections. Explain how Biden's policies have increased the costs of housing and (some) food which per the article is the cause of our current rise in inflation.
Perhaps a case can be made (which I don't think it's true) that the low unemployment and wage growth is Biden's doing - which is, in part, is contributing to the persistent inflation.
You should make another comment about partisanship.
Alrighty then, that’s what I get for taking the time to give advice and explain something here that is clearly not understood.
My mistake …. won’t happen again.
Enjoy your type of bliss …..
Go ahead and bail. I expected it.
Because I don't toe the line that everything that every happens in the country is to the fault, the praise, of a President is partisan I get shit?
lol …..
No worries …. It’s just transitional ……
In that case gird ones loins, remove dentures and tighten bra straps.,.
You can kiss a June interest rate cut goodbye.
I thought that same thing when the jobs report came out.
Rates are going to have to go back up.
Powell’s aggressive rate increases is about the only reason they aren’t still there. Sadly, that has given Biden a false confidence to keep spending.
White House Announces Inflation Doing Great If You Hold The Chart Upside Down