Skip to Content
father and daughter grocery shopping

Economic Data Report

Economic Data Report

Inflation Proving Tough to Control

  • 3.2% YOY came in higher than expected
  • “Core” inflation continues to improve
  • Overall inflation proving somewhat “sticky”
  • Results may put off rate cuts a few more months
Written by Philip Rich, Chief Investment Officer.

US Inflation (CPI) – Not There Yet

The “all items” CPI index came in at 3.2% for the 12 months ending in February. Inflation remains substantially above the Fed’s target rate of 2%, and this report was a reminder that the problem of rising prices may not be as easily or quickly resolved as many had hoped. Sixty percent of the monthly increase was in gasoline and housing. The broad index has not found a new low since last summer. The “core” index (all items less food and energy) was up 3.8% but continues to show gradual improvement. Inflation is proving to be a bit stickier than expected here. The last few percentage points may be tougher to quell than had been estimated earlier this year. The overall picture is one of gradual improvement, but nothing in this report would cause the Fed to cut rates any earlier than this summer.

cpi

Learn about our economy expert.

Philip Rich

Chief Investment Officer

  1. This information is for informational purposes only and does not constitute investment advice.
    Sources:
    GDP – Bureau of Economic Analysis
    Employment & Inflation – Bureau of Labor Statistics
    Interest Rates – Federal Reserve
    P/E S&P 500 – multpl.com


    Non-Deposit investment products and services, and Insurance products and services offered through United Community Banks, Inc. are: 

    • NOT Insured by FDIC or Any Other Government Agency;

    • NOT Guaranteed by United Community Bank or any affiliate of  United Community Bank;

    • NOT a Deposit or Obligation;

    • Subject to Risk and May Lose Value

    This content is not intended as, and shall not be understood or construed as, financial advice, investment advice, or any other advice. This content is provided for informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. United Community shall not be liable for any damages of any kind relating to such information not as to the legal, regulatory, financial or tax implications of the matters referred herein. All views and opinions expressed are those of the writer/commentator and do not reflect the views or positions of United Community.

External Link Disclaimer

You are leaving United Community and being directed to a third-party site that is not maintained, owned or operated by United Community Bank. United Community does not control and is not responsible for the privacy or security practices of the third-party. By clicking “Accept,” you are requesting to be transferred to the third-party website. If you do not want to visit the page, you can close this page by clicking "Return To Site”.