Economy

CPI Manages to Escape Deflation

Investors and economists have worried that we are entering a deflationary cycle. A strong dollar, weak commodities and weak overseas economies are all to blame. The U.S. Labor Department has shown deflation on the producer side, but the Labor Department’s measurement of the Consumer Price Index (CPI) may offer at least some room to breathe on the deflation front.

The CPI rose by 0.2% on a seasonally adjusted basis in the month of February. The CPI’s core rate, excluding food and energy, was also up by 0.2%.

Tuesday’s report was slightly higher than expectations. Bloomberg and Dow Jones both had estimates of 0.2% on the headline CPI and 0.1% on the core CPI.

On a year-over-year basis, consumer prices were up by 1.7%. This is still under the 2.0% to 2.5% that the Federal Reserve is currently hoping for, but at least it is not much lower.

As a reminder, the FOMC’s recent message indicated that the Fed is expecting inflation to remain very soft for longer than expected. The members also lowered their growth forecasts and their path to raising interest rates further as well.

ALSO READ: The Largest Employer in Each State

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.