by John Carney
Breitbart.com
Prices charged by U.S. producers of goods and services rose by 2.1 percent over the twelve months through March, an increase over the 1.6 percent annual inflation recorded in the previous month.
Despite the increase in the year-over-year inflation, rate, there was some good news in the Bureau of Labor Statistics’ producer price index (PPI) for final demand. The monthly increase slowed to 0.2 percent in March from 0.6 percent in February.
Economists had forecast worse. The year-over-year figure was seen as rising to 2.3 percent and the forecast for the monthly figure was for a 0.3 percent increase.
Core PPI, which excluded food and energy prices, rose 0.2 percent, matching the consensus forecast and down from February’s 0.3 percent rise. The annual increase came in at 2.4 percent, just ahead of the expectation for a 2.3 percent rise.
[Note from James: The first thing I did this morning when I saw the US government’s latest inflation numbers was to call my friend and partner Peter Schiff to enjoy a good rant about how the Fed has completely lost the war with inflation. Peter’s thoughts are below, and I agree entirely.]
At the start of the year, it looked like America’s fight with inflation was finally coming to an end.
According to the Bureau of Labor Statistics’ latest price inflation data, CPI inflation in March rose to a seven-month high, and price inflation hasn’t proven nearly as transitory as the regime’s economists have long predicted.
As we approach what is likely to be the most chaotic presidential election in U.S. history, trouble signs are starting to erupt for the U.S. economy. In fact, CNN is actually admitting that “the long-predicted storm clouds in the economy may actually be forming”. I can’t remember the last time that I saw a CNN article with a headline like that. But at this point, it is becoming extremely difficult for the mainstream media to avoid the truth. Inflation is getting worse at the same time that many key sectors of our economy are slowing down. If you thought that the last couple of years were rough for the economy, just wait until you see what is coming next. Tremendous turmoil is on the horizon, and the American people are becoming increasingly emotional about our rapidly growing economic problems.
Hotter-than-expected inflation data Wednesday threw cold water on investors’ hopes that the Federal Reserve would begin cutting interest rates as early as June – sending the markets plunging.
Ugly inflation in services drives up the 3-month “core CPI” for 7th month, to 4.5% annualized, worst in a year, and the 3-month overall CPI to worst since Nov 2022.
Consumer prices in the US rose faster than expected last month, in a sign that the fight to slow inflation has stalled.
Inflation remains the stickiest of problems for the U.S. economy, with the March consumer price index coming in hotter than expected — the third straight month that prices have accelerated. Gasoline prices and rent contributed over half the monthly increase, the government said on Wednesday.