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Bloomberg — Economy — US inflation and Fed interest rates — Economics — Monetary Policy — Inflation

US Core CPI Tops Estimates, Pressuring Fed as It Weighs Hike

US core consumer prices rose 0.5% in February, increasing 5.5% from a year earlier. The figures present a difficult decision for the Fed on interest rates, as inflation remains too high with financial stability risks.

1 min read
  • US core CPI rose 0.5% in February, the most in 5 months.
  • The gauge increased 5.5% from a year earlier, signaling underlying inflation.
  • Shelter accounted for over 70% of the monthly gain, with hotels contributing to the jump.
  • The Fed faces a tough choice on interest rates, as inflation remains too high with growing financial stability risks.
  • Real average hourly earnings fell 0.1% in February and have been negative for almost two years.
US Core CPI Tops Estimates, Pressuring Fed as It Weighs Hike
Underlying US consumer prices rose in February by the most in five months, forcing a tough choice for Federal Reserve officials weighing still-rapid inflation against banking turmoil in their next interest-rate decision.
BloombergAugusta Saraiva

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