{"id":2304,"date":"2023-03-14T17:02:49","date_gmt":"2023-03-14T22:02:49","guid":{"rendered":"https:\/\/embarrdowns.com\/cpi-report-shows-annual-price-increase-slowing-down-in-february\/"},"modified":"2023-03-14T17:02:50","modified_gmt":"2023-03-14T22:02:50","slug":"cpi-report-shows-annual-price-increase-slowing-down-in-february","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/cpi-report-shows-annual-price-increase-slowing-down-in-february\/","title":{"rendered":"CPI Report Shows Annual Price Increase Slowing Down in February"},"content":{"rendered":"

The U.S. Consumer Price Index (CPI) report released Tuesday morning showed that annual price increases continued to slow in February, according to the Bureau of Labor Statistics.[0]<\/a><\/sup> The CPI, a closely watched gauge of inflation, rose 6.0% year-over-year in February, less than January’s year-over-year change of 6.4%.[1]<\/a><\/sup> On a month-over-month basis, the overall CPI rose 0.4%.<\/p>\n

The Core CPI (excluding volatile food and energy costs) increased by 0.5% from January and 5.5% year-over-year from the same month in 2021.[2]<\/a><\/sup> The Bureau of Labor Statistics reported that shelter prices were the primary cause of the monthly increase in February, comprising 70% of the total growth.[3]<\/a><\/sup> The prices for shelter increased by 0.8% in the last month, and by 8.1% in comparison[4]<\/a><\/sup><\/p>\n

Many economists have explained the high inflation numbers by suggesting that this is just a data collection problem.[5]<\/a><\/sup> The cost of shelter rose 8.1%, one of the largest increases since the early 1980s, which constituted 60% of the total increase in the cost of all items except food and energy.[5]<\/a><\/sup> However, the government\u2019s shelter data may not be capturing what\u2019s actually happening in the housing market, as rent prices are already falling and the housing market appears to be softening.[5]<\/a><\/sup><\/p>\n

The elevated inflation rate is creating a challenge for the Federal Reserve, as they must balance the need to bring down inflation with the instability in the banking sector.[6]<\/a><\/sup> The Fed had hinted that they were on target for a meaningful rate increase, but the recent disruption in the banking sector has called that into question.[7]<\/a><\/sup> Futures on interest rates are predicting a 0.25 percentage point hike as the most likely outcome, though there is still a chance the Federal Reserve might keep rates unchanged.[8]<\/a><\/sup> Expectations of a 0.5 percentage point increase which had been held last week have now decreased.[8]<\/a><\/sup><\/p>\n

Janet Yellen, the Treasury Secretary, pointed to increasing interest rates as the cause of SVB’s closure.[9]<\/a><\/sup> Goldman Sachs no longer expects the Fed to raise interest rates at its next two-day meeting on March 21 and 22 and Investment bank Nomura is calling for no increase next week.[10]<\/a><\/sup> Goldman Sachs posits that the Federal Reserve may still raise rates by 25 basis points in the months of May, June, and July.[9]<\/a><\/sup> <\/p>\n

Inflation remains elevated but is slowly coming down, according to the latest Consumer Price Index.[11]<\/a><\/sup><\/p>\n

0. <\/span>“Inflation Is Slowing Down. It’s a Positive for the Fed.” Barron’s, 14 Mar. 2023, https:\/\/www.barrons.com\/articles\/february-cpi-inflation-data-report-today-ea428646<\/a><\/a><\/p>\n

1. <\/span>“Inflation rose 6% in February as Fed mulls more rate hikes amid bank chaos” New York Post , 14 Mar. 2023, https:\/\/nypost.com\/2023\/03\/14\/inflation-rose-6-in-february-as-fed-mulls-more-rate-hikes<\/a><\/a><\/p>\n

2. <\/span>“US CPI rose 6.0% in February, per the Bureau of Labor Statistics” Business Insider, 14 Mar. 2023, https:\/\/www.businessinsider.com\/inflation-price-growth-us-cpi-february-2023-3<\/a><\/a><\/p>\n

3. <\/span>“Aside From Lagged Rent Estimates, CPI Inflation Averaged 1.1 Percent for Eight Months” Cato Institute, 14 Mar. 2023, https:\/\/www.cato.org\/blog\/aside-lagged-rent-estimates-cpi-inflation-averaged-11-eight-months-2<\/a><\/a><\/p>\n

4. <\/span>“Inflation fell for the eighth straight month in February” The Mercury News, 14 Mar. 2023, https:\/\/www.mercurynews.com\/2023\/03\/14\/inflation-fell-for-the-eighth-straight-month-in-february\/<\/a><\/a><\/p>\n

5. <\/span>“As Inflation Rises, Consumers Shrug at Price Increases | Time” TIME, 14 Mar. 2023, https:\/\/time.com\/6262763\/inflation-high-prices-consumers-cpi<\/a><\/a><\/p>\n

6. <\/span>“Inflation cooled in February, yet remains stubbornly high” CBS News, 14 Mar. 2023, https:\/\/www.cbsnews.com\/news\/inflation-cpi-report-february-2023-03-14<\/a><\/a><\/p>\n

7. <\/span>“Inflation Fell To 6% In February\u2014But Some Experts Fear Banking Crisis Could Make Prices Worse” Forbes, 14 Mar. 2023, https:\/\/www.forbes.com\/sites\/jonathanponciano\/2023\/03\/14\/inflation-fell-to-6-in-february-but-some-experts-fear-banking-crisis-could-make-prices-worse<\/a><\/a><\/p>\n

8. <\/span>“February\u2019s CPI Inflation Numbers Put Focus On Home Prices” Forbes, 14 Mar. 2023, https:\/\/www.forbes.com\/sites\/simonmoore\/2023\/03\/14\/februarys-cpi-inflation-numbers-put-focus-on-home-prices\/<\/a><\/a><\/p>\n

9. <\/span>“Inflation cools but interest rate and recession fears remain” Fox Business, 14 Mar. 2023, https:\/\/www.foxbusiness.com\/personal-finance\/inflation-cpi-increases-february-2023<\/a><\/a><\/p>\n

10. <\/span>“What Inflation Data Means for the Economy After SBV Collapse” Newsweek, 14 Mar. 2023, https:\/\/www.newsweek.com\/inflation-sbv-data-economy-collapse-finance-1787619<\/a><\/a><\/p>\n

11. <\/span>“Breaking News: Headline US Inflation Drops to 6%, US Dollar Undecided” DailyFX, 14 Mar. 2023, https:\/\/www.dailyfx.com\/news\/breaking-news-headline-us-inflation-drops-to-6-us-dollar-undecided-20230314.html<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. Consumer Price Index (CPI) report released Tuesday morning showed that annual price increases continued to slow in February, according to the Bureau of Labor Statistics.[0]<\/a><\/sup> The CPI, a closely watched gauge of inflation, rose 6.0% year-over-year in February, less than January’s year-over-year change of 6.4%.[1]<\/a><\/sup> On a month-over-month basis, the overall CPI rose 0.4%.<\/p>\n

The Core CPI (excluding volatile food and energy costs) increased by 0.5% from January and 5.5% year-over-year from the same month in 2021.[2]<\/a><\/sup> The Bureau of Labor Statistics reported that shelter prices were the primary cause of the monthly increase in February, comprising 70% of the total growth.[3]<\/a><\/sup> The prices for shelter increased by 0.8% in the last month, and by 8.1% in comparison[4]<\/a><\/sup><\/p>\n

Many economists have explained the high inflation numbers by suggesting that this is just a data collection problem.[5]<\/a><\/sup> The cost of shelter rose 8.1%, one of the largest increases since the early 1980s, which constituted 60% of the total increase in the cost of all items except food and energy.[5]<\/a><\/sup> However, the government\u2019s shelter data may not be capturing what\u2019s actually happening in the housing market, as rent prices are already falling and the housing market appears to be softening.[5]<\/a><\/sup><\/p>\n

The elevated inflation rate is creating a challenge for the Federal Reserve, as they must balance the need to bring down inflation with the instability in the banking sector.[6]<\/a><\/sup> The Fed had hinted that they were on target for a meaningful rate increase, but the recent disruption in the banking sector has called that into question.[7]<\/a><\/sup> Futures on interest rates are predicting a 0.25 percentage point hike as the most likely outcome, though there is still a chance the Federal Reserve might keep rates unchanged.[8]<\/a><\/sup> Expectations of a 0.5 percentage point increase which had been held last week have now decreased.[8]<\/a><\/sup><\/p>\n

Janet Yellen, the Treasury Secretary, pointed to increasing interest rates as the cause of SVB’s closure.[9]<\/a><\/sup> Goldman Sachs no longer expects the Fed to raise interest rates at its next two-day meeting on March 21 and 22 and Investment bank Nomura is calling for no increase next week.[10]<\/a><\/sup> Goldman Sachs posits that the Federal Reserve may still raise rates by 25 basis points in the months of May, June, and July.[9]<\/a><\/sup> <\/p>\n

Inflation remains elevated but is slowly coming down, according to the latest Consumer Price Index.[11]<\/a><\/sup><\/p>\n

0. <\/span>“Inflation Is Slowing Down. It’s a Positive for the Fed.” Barron’s, 14 Mar. 2023, https:\/\/www.barrons.com\/articles\/february-cpi-inflation-data-report-today-ea428646<\/a><\/a><\/p>\n

1. <\/span>“Inflation rose 6% in February as Fed mulls more rate hikes amid bank chaos” New York Post , 14 Mar. 2023, https:\/\/nypost.com\/2023\/03\/14\/inflation-rose-6-in-february-as-fed-mulls-more-rate-hikes<\/a><\/a><\/p>\n

2. <\/span>“US CPI rose 6.0% in February, per the Bureau of Labor Statistics” Business Insider, 14 Mar. 2023, https:\/\/www.businessinsider.com\/inflation-price-growth-us-cpi-february-2023-3<\/a><\/a><\/p>\n

3. <\/span>“Aside From Lagged Rent Estimates, CPI Inflation Averaged 1.1 Percent for Eight Months” Cato Institute, 14 Mar. 2023, https:\/\/www.cato.org\/blog\/aside-lagged-rent-estimates-cpi-inflation-averaged-11-eight-months-2<\/a><\/a><\/p>\n

4. <\/span>“Inflation fell for the eighth straight month in February” The Mercury News, 14 Mar. 2023, https:\/\/www.mercurynews.com\/2023\/03\/14\/inflation-fell-for-the-eighth-straight-month-in-february\/<\/a><\/a><\/p>\n

5. <\/span>“As Inflation Rises, Consumers Shrug at Price Increases | Time” TIME, 14 Mar. 2023, https:\/\/time.com\/6262763\/inflation-high-prices-consumers-cpi<\/a><\/a><\/p>\n

6. <\/span>“Inflation cooled in February, yet remains stubbornly high” CBS News, 14 Mar. 2023, https:\/\/www.cbsnews.com\/news\/inflation-cpi-report-february-2023-03-14<\/a><\/a><\/p>\n

7. <\/span>“Inflation Fell To 6% In February\u2014But Some Experts Fear Banking Crisis Could Make Prices Worse” Forbes, 14 Mar. 2023, https:\/\/www.forbes.com\/sites\/jonathanponciano\/2023\/03\/14\/inflation-fell-to-6-in-february-but-some-experts-fear-banking-crisis-could-make-prices-worse<\/a><\/a><\/p>\n

8. <\/span>“February\u2019s CPI Inflation Numbers Put Focus On Home Prices” Forbes, 14 Mar. 2023, https:\/\/www.forbes.com\/sites\/simonmoore\/2023\/03\/14\/februarys-cpi-inflation-numbers-put-focus-on-home-prices\/<\/a><\/a><\/p>\n

9. <\/span>“Inflation cools but interest rate and recession fears remain” Fox Business, 14 Mar. 2023, https:\/\/www.foxbusiness.com\/personal-finance\/inflation-cpi-increases-february-2023<\/a><\/a><\/p>\n

10. <\/span>“What Inflation Data Means for the Economy After SBV Collapse” Newsweek, 14 Mar. 2023, https:\/\/www.newsweek.com\/inflation-sbv-data-economy-collapse-finance-1787619<\/a><\/a><\/p>\n

11. <\/span>“Breaking News: Headline US Inflation Drops to 6%, US Dollar Undecided” DailyFX, 14 Mar. 2023, https:\/\/www.dailyfx.com\/news\/breaking-news-headline-us-inflation-drops-to-6-us-dollar-undecided-20230314.html<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":2303,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2304"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=2304"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2304\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/2303"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=2304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=2304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=2304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}