The March Consumer Price Index (CPI) report signaled that inflation is still running hot. Specifically, the CPI and the core CPI, which excludes the more volatile food and energy components, both rose 0.4% month to month, topping the expectations calling for 0.3% increases. On a 12-month basis, the CPI and core CPI increased 3.5% and 3.8%, respectively, with both readings above consensus forecasts. This situation bears watching, given the recent surge in commodities prices, particularly...

The Federal Reserve held the federal funds rate at 5.25% to 5.50% during its March Federal Open Market Committee (FOMC) meeting. In his post-statement press conference, Chairman Jerome Powell said that the central bank is on track to begin cutting the benchmark short-term interest rate later this year. However, this move will depend on continued progress being made on reducing inflation, which did tick up during the first two months of this year, but overall...

Inflation remains stubbornly high. True, the pace of price growth has slowed considerably from the peak rates seen over the last couple of years, but getting to the Federal Reserve’s target of 2% annual growth is proving daunting. This was reflected in the recent re-acceleration in price growth at both the consumer and producer (wholesale) levels in February.The latter was a bit troublesome, as growth at the wholesale level may well drive an increase in...