 "US inflation, inflation")
US consumer prices increased solidly in February as Americans faced persistently higher costs for rents and food, posing a dilemma for the Federal Reserve, whose fight against inflation has been complicated by the collapse of two regional banks.
In the 12 months through February, the CPI increased 6.0 per cent, marking the smallest year-on-year gain since September 2021. The CPI rose 6.4 per cent on a year-on-year basis in January. The Federal Reserve was seen raising its benchmark rate a quarter of a percentage point next week and again in May.
“Inflation is proving too sticky for the Fed’s liking and, at the moment, likely weighs toward a 25-basis-point rate increase next week,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. “But the central bank is also caught between the rock of stubborn inflation and a hard place of financial instability.”
Food prices rose 0.4 per cent, with the cost of food consumed at home gaining 0.3 per cent.
There was a 1.0 per cent jump in the cost of nonalcoholic beverages.
Prices for fruits and vegetables increased moderately. But meat cost less and egg prices fell 6.7 per cent. Gasoline prices increased 1.0 per cent. The cost of natural gas, however, decreased 8.0 per cent.
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