Perhaps this is surprising to the White House, but for those of us who actually shop for groceries on a weekly basis, this just confirms what we already knew:
The consumer price index accelerated at a faster-than-expected pace in March, pushing inflation higher and likely dashing hopes that the Federal Reserve will be able to cut interest rates anytime soon.
The CPI, a broad measure of goods and services costs across the economy, rose 0.4% for the month, putting the 12-month inflation rate at 3.5%, or 0.3 percentage point higher than in February, the Labor Department's Bureau of Labor Statistics reported Wednesday. Economists surveyed by Dow Jones had been looking for a 0.3% gain and a 3.4% year-over-year level.
But how can this be? Just a few weeks ago we were told we have "the lowest inflation rates of any country in America!"
And it's been weeks since Biden took on "big grocery" to tackle inflation rates!
How is it possible that we're still suffering so much when it seems like our leaders truly understand this problem??
It's not just food, either:
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.
Nor is it merely that prices are getting higher; earning power is also suffering, too, as "real average hourly earnings were flat on the month and increased just 0.6% over the past year."
Even CNN isn't happy.
That's up considerably from February's 3.2% rate and marks the highest annual gain in the past six months. Wednesday's report further highlights that the path to lower inflation remains extremely bumpy — and continue to be a drag on Americans' hard-earned finances — and that any loosening of monetary policy might not happen soon.
Don't expect any relief from high interest rates: Atlanta Fed President Raphael Bostic "expects just one cut this year, likely not coming until the fourth quarter."
(Just ahead of the election, maybe??)
I don't know how much more of Joe Biden's sterling economy we can handle.
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