Today we will get a new reading on inflation. This comes after Friday’s jobs report showed that hiring remains strong despite the headwinds facing the economy. US employers hired 236,000 new workers, a strong increase but the weakest result since December 2020. The unemployment rate fell from 3.6% to 3.5%.
After the jobs report was released, the likelihood increased that the Federal Reserve would raise interest rates by a quarter of a percentage point at its meeting next month, according to the CME FedWatch Tool, which analyzes data from U.S. futures contracts. Federal Reserve funds.
Last month’s Consumer Price Index report sent a red flag to the Federal Reserve. Although inflation declined annually for the eighth consecutive month, it rose sharply on a monthly basis. That prompted the Fed to raise interest rates at its last meeting despite the financial turmoil that followed the collapse of Silicon Valley Bank.
If the March CPI report doesn’t show that inflation is improving enough, it will ensure that the Fed will raise interest rates by at least a quarter of a percentage point at its May meeting.
Follow the live updates:
When is the CPI report published?
The Bureau of Labor Statistics will release the CPI report at 8:30 am ET.
When is the next Fed meeting?
The next meeting is scheduled for May 2-3.
current inflation rate
The current inflation rate is 6% per year.
Expectations from the CPI report
Economists surveyed by Bloomberg predict that prices rose 0.2% per month. Annually, they estimate a price rise of 5.2%.
underlying CPI
The core CPI is a measure of the change in consumer prices, excluding energy and food, which are generally the most volatile components of the CPI. Economists expect March’s core CPI to rise to 5.6% yoy from 5.5%.
dow futures
Futures trading for the Dow Jones Industrial Average was higher on Wednesday before the report was released.
This article originally appeared on USA TODAY: CPI Inflation Report Released Today: Follow Us For Live Updates