SFS Insights: Inflation Rose Slightly More Than Expected
- Inflation picked up pace in February, likely a troubling sign for Federal Reserve officials looking to see more progress on easing price pressures before implementing any much anticipated cuts to interest rates. The consumer price index climbed 3.2% year over year in February, according to data released Tuesday by the Bureau of Labor Statistics.
- Core inflation, which excludes the more volatile food and energy prices and is considered a better predictor of price trends than the headline numbers, hit an 3.8% annual pace for the month. That is down slightly from the 3.9% rate recorded in December and January.
- The US economy added far fewer jobs in the previous two months than previously believed and signs of slowing wage growth are beginning to emerge and an uptick in unemployment back to 3.9% bolstered the narrative that the labor market remains resilient but isn't growing at a pace uncomfortable for the Fed in its fight against inflation.
