Headline RoundupMarch 12th, 2024

Inflation Rose More Than Expected in February. What Does It Mean for Interest Rates?

Summary from the AllSides News Team

The Consumer Price Index (CPI) rose 0.4% in February from the month before and 3.2% from a year ago, new data from the Department of Labor’s consumer price index shows.

The Details: Shelter and gasoline costs were the main contributors to inflation. Gasoline prices climbed 3.8% from January, but are down 3.9% front the same time last year. Rent, however, while having increased 0.4% from January, is up 5.8% from last year. Core prices, which exclude volatile food and energy items, increased 0.4% in February; The annual increase of core prices lowered from 3.9% to 3.8%, however, the smallest since May 2021.

Interest Rates: The Federal Reserve’s goal was to have inflation down to 2% annually. Not hitting the inflationary target means the Fed likely won’t lower interest rates for some months.

Key Quote: Fed Chair Jerome Powell said last week while testifying on Capitol Hill, “The committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.” Nationwide Chief Economist Kathy Bostjancic, said, “While we thought a May rate cut was on the table, it is increasingly likely that the [Fed] waits at least until June.”

How The Media Covered It: Sources across the spectrum noted rent and gasoline costs as contributing to a higher-than-expected inflation rate and the consequences it will have in regards to lowering interest rates.

Featured Coverage of this Story

More headline roundups

AllSides Picks

More News about Economy and Jobs from the Left, Center and Right

From the Left

From the Center

From the Right