(Patriot.Buzz) – In the face of the alarming economic hardships facing hardworking citizens across the country, American families felt the pressure of escalating prices once more in February due to damaging Bidenomics.
This new development negates all the Biden administration’s claims of effectively curbing inflation and softens expectations that the Federal Reserve (Fed) would reduce interest rates in the coming months.
The consumer price index, a key measure of inflation, rose 0.4% within the month, a quicker climb than January’s and marking the fourth consecutive month of increase. Meanwhile, year-over-year prices have surged by 3.2%, outpacing January’s annual increase of 3.1%.
Anticipating the month-on-month rise, economic experts were taken aback to see the annual rate exceed their expectations of 3.1%.
The Federal Reserve’s hopes for inflation to cool off to around 2% now seem more distant with February’s figures. This recent inflationary spike suggests the Fed may delay rate cuts until summer or even later as opposed to earlier optimism.
Excluding the unpredictable sectors of food and energy, the core consumer price index also rose by 0.4% to mirror January’s increase and surpass predictions for a slight decrease. Annually, core prices have climbed 3.8%, slightly less than January’s 3.9% but still over the expected 3.7%.
The report did offer a glimmer of hope as food prices remained unchanged from the previous month. Grocery prices remained steady after a significant 0.4% rise in January, and dining out became slightly more expensive, with restaurant prices inching up by 0.1% after a 0.5% rise in January.
Fed Chair Jerome Powell has shown particular interest in what’s termed as “supercore” inflation, which concerns core services prices excluding housing. This segment saw a 0.5% increase, a slowing down from January’s rise but potentially too high for comfort.
At the same time housing costs continue to climb rapidly, with the shelter index increasing by 0.4% monthly and 5.7% annually, even if at a slightly slower pace than January’s 0.6% monthly increase. Rent inflation picked up speed, while the “owners equivalent of rent” measure slowed.
This second consecutive month of notable core inflation implies that the rise seen in January was not a one-off event but an indication of persistent inflationary pressures that challenge the narrative that inflationary pressures are easing.
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