WASHINGTON (Reuters) - U.S. consumer prices increased in January, with a gauge of underlying inflation posting its largest gain in 12 months, bolstering views that price pressures will accelerate this year.
Those expectations were underscored by other data on Thursday showing the number of Americans filing for unemployment benefits fell last week to a 48-year low as the labor market tightens. Another a survey showed prices paid by manufacturers for raw materials hit a more than six-year high in February.
The combination of rising inflation and a robust labor market could force the Federal Reserve to raise interest rates a bit more aggressively this year than currently anticipated as it worries about the economy overheating. The U.S. central bank has forecast three rate hikes in 2018. The first rate increase is expected later this month.
“The Fed wanted to see more inflation and it looks like it is getting it,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania.“I am down for four (rate hikes) because the acceleration in inflation is not likely to fade anytime soon.”
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4 comments:
Order is returning to the economy. Inflation is up because unemployment is low. As it should be.
Trump is a President of the people.
Eventually the FED has to admit the inflation is rising as the people will no longer have options to "buy unbranded products" to replace the products they normally purchase. This is how they "keep inflation under control" - officially. They SUBSTITUTE products people normally purchase with products that cost less, claiming this is what people do when they cannot afford the price increases. Hence, there is "no inflation" - because households feel no pain.
It is truly criminal.
And crazy.
MAGA. The economy is great. Lowest UE in 48 years. So everything is coming up roses around here, right?
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