According to a Labor Department report on Tuesday, consumer price inflation rose more than experts expected in January. That will leave the Federal Reserve less room to cut interest rates to keep the economy stimulated later this year and pull off a “soft landing” in time for the November election.
This morning new inflation numbers were released.
Inflation was up 3.1% IN JANUARY & 17.9% SINCE JOE BIDEN took office.
Here are some of the largest increases:
🥤Frozen Drinks UP 29%
🚗Car Insurance UP 20.6%
🏠House Repairs UP 18.2%
🎟️Sports Tickets UP 13.5%
🥩Steak UP 10.6%— Congressman Byron Donalds (@RepDonaldsPress) February 13, 2024
Trailing 12-month inflation as measured by the Labor Department’s Consumer Price Index (CPI) rose 3.1% in January. Last month’s inflation print was down from the 3.4% CPI in December, but still markedly higher than the 2.9% experts forecast. Removing volatile food and energy prices from the mix for the core inflation readout, prices grew 3.9% from a year ago.
“Core CPI for January was higher than expected and keeps a Fed rate cut ‘off the menu’ for now,” Sit Investment Associates Senior Vice President Bryce Doty explained. “The real Fed fund rate is still restrictive, but that likely won’t be enough to get the Fed to lower rates until there is more certainty that inflation is fully contained.”
The Federal Reserve has hesitated to cut interest rates because it could cause more inflation faster.
“They were right to be patient because this is the kind of number that is going to cast doubt on whether there really is a lot of deceleration in store for inflation,” said Omair Sharif, founder of Inflation Insights. “This is definitely a spooky number.”
I still can’t believe this is real.
Joe Biden found time to produce this glazed-over, drugged-up nonsensical Super Bowl Script bitching about his own failed economy.
Then the White House looked at it and was like “Oh Hell ya, post that”
— Benny Johnson (@bennyjohnson) February 12, 2024
“Inflation is generally moving in the right direction,” said Bright MLS chief economist Lisa Sturtevant. “But it’s important to remember that a lower inflation rate does not mean that prices of most things are falling — rather, it simply means that prices are rising more slowly. Consumers are still feeling the pinch of higher prices for the things they buy most often.”
The latest NBC News national poll of 1,000 registered voters found President Joe Biden trailing behind former President Donald Trump by 20% on their ability to handle the economy. “What is most concerning is the erosion of Biden’s standing against Trump compared to four years ago,” said Democrat pollster Jeff Horwitt of Hart Research Associates.
