Wholesale inflation continues, but the supply side is having a hard time passing on the price increases if the Labor Department is right on its inflation data. The February Consumer Price Index data showed gains with nominal headline CPI at +0.5% and the core CPI on ex-food and energy came in at +0.2%. Dow Jones was looking for +0.5% on headline and CPI and +0.1% on the core CPI reading.
On a year over year basis the figures are higher at +2.1% on headline inflation and and +1.1 on the core inflation as ex-food and energy.
The good news for now is that the consumers are still not having to ‘officially’ absorb the higher prices. The bad news is that if you have gone shopping for food and gas it sure feels like a lot more than these tame readings. Some will probably be questioning this data today.
If you are one of the conspiracy theorists out there that thinks the government manipulates everything, remember that Uncle Sam has a vested interest in reporting low CPI readings. Government wages and the cost of financing our massive debt burden are just two things that can be kept lower if CPI does not get reported as being higher.
JON C. OGG
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.