- NEWS Desk Global
US INFLATION INCREASES MODERATELY
The Commerce Department indicates a moderate rise in monthly inflation for March in the United States. However, persistent increases in costs related to housing and utilities suggest that the Federal Reserve could maintain elevated interest rates for some time. The Commerce Department released on Friday, also revealed strong consumer spending last month, providing some relief to financial markets that had been concerned about stagflation following data on Thursday showing a surge in inflation alongside a slowdown in economic growth during the first quarter.
"Markets should breathe a sigh of relief this morning," commented Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. "Given the elevated levels of inflation, and this is the new normal for 2024, the market is going to need to get over hopes for Fed rate cuts." According to the Commerce Department's Bureau of Economic Analysis, the Personal Consumption Expenditures (PCE) price index increased by 0.3% last month, matching the unrevised gain observed in February. Goods prices saw a slight uptick of 0.1%, driven by higher costs for gasoline, clothing, and footwear, although this was partially offset by a decline in prices for motor vehicles and parts.