Inflation Report Surprise and How That Could Impact Rate Cuts

The latest inflation reports are renewing concerns about whether prices are going up or down. Both the Consumer Price Index and the Producer Price Index were released for the month of February this week. They were both on the hot side but the PPI delivered the big surprise.   The Federal Reserve released the CPI on Tuesday which shows that inflation was up .4% for the month and 3.2% from a year ago. Economists had anticipated an increase but the annual rate was slightly higher than they expected. As for the core rate, which eliminates food and fuel, both were higher than expected by one tenth of a percent. The monthly rate came in at .4% and the annual rate at 3.8%.    It wasn’t an earth-shattering increase. And it isn’t expected to have a significant impact on the Federal Reserve’s decision because central bank officials will be looking for trends and not a short-term bump in the inflation battle. But the PPI was a bit more of a shock on Thursday...   ...You’ll find a link to various articles on these inflation reports in the show notes at newsforinvestors.com. Sign up for a free RealWealth membership while you are there. You’ll have access to our membership portal where you’ll find lots of resources for new and experienced investors. That include our own market data on metros that are attracting RealWealth investors, property teams in those markets, and real estate professionals who can help you - including our own experienced investment counselors.   And please remember to subscribe to this podcast, if you haven’t already.   Links:   1 - https://www.cnbc.com/2024/03/12/cpi-inflation-report-february-2024-.html   2 - https://www.cnbc.com/2024/03/14/producer-price-index-february-2024-wholesale-inflation-rose-0point6percent-in-february.html   3 - https://www.cnbc.com/2024/03/14/heres-when-the-fed-may-start-cutting-rates-investment-strategists-say.html   4 - https://www.cnbc.com/2024/03/07/powell-says-fed-is-not-far-from-the-point-of-cutting-interest-rates.html   5 - https://www.cnbc.com/2024/03/14/heres-when-the-fed-may-start-cutting-rates-investment-strategists-say.html