Inflation ticked higher in March as incomes, spending rose
Inflation picked up slightly in March as Americans saw their paychecks rise and kept up a sturdy pace of spending, according to data released Friday by the Commerce Department.
The personal consumption expenditures (PCE) price index, the Federal Reserve's preferred gauge of inflation, rose 0.3 percent in March and 2.7 percent over the past year. The monthly inflation rate held firm, as economists expected, while the annual inflation rate ticked 0.1 percentage point higher than predicted by experts.
The slight bump in inflation came as consumer spending rose 0.8 percent in March — 0.5 percent when adjusted for inflation — for the second consecutive month. Disposable incomes also rose by 0.5 percent and 0.2 percent when adjusted for inflation in March. Last month was the first time Americans had more money to spend after inflation and taxes since December.
The March inflation report will likely keep the Fed on track to maintain its baseline interest rate range of 5.25 percent to 5.5 percent at its policy meeting next week.
Despite projecting a series of rate cuts at the end of 2023, Fed officials have held off on easing rates after a string of strong economic data to start 2024. Job growth has exceeded expectations for four straight months, and the jobless rate has remained below 4 percent for the longest stretch since the late 1960s.
Inflation has also ticked higher throughout the year as measured by both the PCE price index and the more prominent consumer price index (CPI) published by the Labor Department.
While the U.S. economy grew at a slower rate than expected during the first quarter, that will be unlikely to move the Fed toward easing rates with inflation still 0.7 percentage points above their annual target.
Date: |
Filter
-
Jobs Report in Focus as Investors Seek Rate Clues
Stock futures ticked higher ahead of an employment report that is expected to show labor-market growth slowing in April.The Wall Street Journal - World -
Standard Chartered posted a rise in first-quarter net profit due to higher trading income, despite lower earnings from the bank's lending business.
Standard Chartered posted a rise in first-quarter net profit due to higher trading income, despite lower earnings from the bank’s lending business.The Wall Street Journal - World -
Citigroup CEO Jane Fraser says low-income consumers have turned far more cautious with spending
Citigroup CEO Jane Fraser joined CNBC's Sara Eisen on Monday for an interview on the economy.CNBC - Business -
What's News: Business & Finance
What’s News: Business & FinanceThe Wall Street Journal - World
More from The Hill
-
Pro-Palestinian protesters try to disrupt Met Gala
Pro-Palestinian demonstrations broke out near the Metropolitan Museum of Art on Monday night as celebrities gathered for the annual Met Gala event. The New York Police Department confirmed multiple people were arrested in the protests, though did ...The Hill - Politics -
David Pecker was 'swatted' the day he testified in Trump trial: Report
The former magazine publisher at the center of former President Trump’s criminal hush money trial was “swatted” on the day he testified in the case, Reuters reported Monday. An unidentified person claimed in an April 25 email that they had tied up ...The Hill - Politics - Donald Trump -
Noem defends telling story about killing dog in new book
South Dakota Gov. Kristi Noem (R) defended herself Monday after she received mass criticism for sharing a story of shooting and killing her young hunting dog and an improbable anecdote that she met North Korean leader Kim Jong Un in her new book. ...The Hill - Politics -
House swears in New York Democrat, thinning GOP majority
Rep. Tim Kennedy (D-N.Y.) was sworn in on the House floor Monday, replacing the now-retired Rep. Brian Higgins (D-N.Y.) and leaving Republicans with just a one-vote margin for any partisan vote. Kennedy, previously a state senator, defeated GOP ...The Hill - Politics - New York -
House panel again subpoenas Biden’s Labor chief over return-to-work plan
The House Education and Workforce Committee on Monday subpoenaed acting Secretary of Labor Julie Su over what it called a "failure" to hand over materials related to the department's return-to-work plan. "Under Acting Secretary Su, the [Department ...The Hill - Politics - Joe Biden