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Consumer Prices Jump in March After Stimulus as Economies Reopen

Published 04/13/2021, 09:03 AM
Updated 04/13/2021, 09:04 AM

By Dhirendra Tripathi

Investing.com – Consumer prices in the U.S. jumped 0.6% in March from a month earlier, just a tad more than the expectations of a 0.5% gain as consumers, armed with cash from the $1.9 trillion stimulus, flocked to buy more durables and groceries.

On a year-over-year basis, the index rose 2.6%, the most since August 2018.

Core CPI, which excludes food and energy costs, increased 0.3% in March and 1.6% over the same month last year.

The rise in inflation was expected. It was in March last year when the U.S. and the rest of the world was just trying to absorb the impact of the pandemic -- eventually a catastrophe for many countries and millions of people.

Governments all over the world and central banks let loose an unprecedented supply of money that was bound to push up inflation. But with employment still below desired levels and the effects of the pandemic still fresh, inflation remains at a comfortable level under the watchful eyes of the Federal Reserve.

Fed officials expect GDP to grow around 6.5% this year, which would be the fastest increase since 1984.

Chairman Jerome Powell has, on more than one occasion, ruled out rate hikes for the foreseeable future.

That hasn’t convinced bondholders, with government bond yields rising to their highest levels since before the pandemic.

 

Latest comments

The only thing real about Reuters bow a days, are the comments from the people. The quality is terrible and the way reuters twist and hide the truth is frightening. Or it could be, that real joirnalist no longer work there
Seriously Reuters you really believe that the consumers received the whole1.9 trillion dollars.
"A tad more?" A 20% increase is a BIG tad.
lmao, why would anybody trust the fed? they are the reason on inflation in the first place
inflation remains at a comfortable level under the watchful eyes of the Federal Reserve. Don't worry folks..the Fed has your back. These are the smartest economists on the planet..and they have never steered us wrong.
tounge n cheek
obviously no inflation is seen by the fed /s
"which excludes food and energy costs" - Oh, so as long I don't buy food or electricity my cost of living will only increase slightly. Gee, thanks Fed
Cost of everything under trump grew exponentially.
you have better lies to tell?
it's supply and demand. it will work out. remember the runs on toilet paper and other household goods? it's no big deal!
If prices increase too fast, FED have to raise interest n stop the printers. That is when # hit the fan.
Why market bullish agaisnt usd what ****** is that
Liars figure as figures lie.
The CPI is deliberately excluding food and energy, those two that have the most increase. They are essentially faking the inflation report.
Core CPI excludes those things. They reported the CPI numbers in the first sentence
GDP growth of 6.5 and inflation if 20 percent should be good for the welfare state.
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