For the second month in a row, inflation came in above the market’s estimates. Bloomberg’s Augusta Saraiva reports:
Underlying US inflation topped forecasts for a second month in February as prices jumped for used cars, air travel and clothes, reinforcing the Federal Reserve’s cautious approach to cutting interest rates.
The so-called core consumer price index, which excludes food and energy costs, increased 0.4% from January, according to government data out Tuesday. From a year ago, it advanced 3.8%.
Economists see the core gauge as a better indicator of underlying inflation than the overall CPI. That measure climbed 0.4% from January and 3.2% from a year ago, boosted by gasoline prices, Bureau of Labor Statistics figures showed.
Action Line: Monetary policy affects markets with unpredictable lags. Assuming inflation is gone is a mistake you don’t want to make. It may not be “under control.” Click here to subscribe to my free monthly Survive & Thrive letter and become an inflation fighter.
