Inflation slowed for a ninth straight month in March amid drops in both gasoline and grocery prices.
But an underlying inflation measure that better reflects long-term trends accelerated on another surge in rent.
Consumer prices overall increased 5% from a year earlier, down from 6% in February and a 40-year high of 9.1% last June, according to the Labor Department’s consumer price index.
That’s the smallest annual gain since May 2021.
Articles will be flooding out calling for the end of rate hikes.
Here’s the first one already.
The consumer price index showed that price pressures slackened more than expected in March, as prices for energy and groceries fell, but core inflation remained firm. Although core inflation remains well above the Fed’s target, the most timely data on the job market and credit conditions should give policymakers more than enough reason to forego one last right hike next month.
Powell never said he would stop after one more rate hike,. In fact he said rate hikes would continue until inflation is down to the 2% level.
Now apparently banks have become tougher on lending standards which will slow the economy and act as a rate hike. The question is how soon does that action ripple through the economy?