Warm breezes are back, and so is hotter inflation data, according to the recent Consumer Price Index (CPI) report. The Labor Department reveals that consumer prices climbed 3.2% from Feb. 2023 — surpassing the 3.1% median estimate. And it seems like inflation isn’t cooling off anytime soon.
- The main drivers behind the monthly inflation jump were higher gasoline and shelter costs, which accounted for over 60% of the overall increase. Prices for used cars, air travel, and clothing also contributed to the uptick in inflation.
- The Core CPI, which excludes volatile energy and food costs, rose 0.4% from January, mainly due to rising gasoline prices — marking a 3.8% YoY increase.
Retail is thriving: Despite concerns about a potential recession voiced by JPMorgan Chase CEO Jamie Dimon, retail is on the rise. The CNBC/National Retail Federation (NRF) Retail Monitor indicates a 1.06% uptick in retail sales, excluding autos and gas, for February — a reversal from January’s 0.8% decline. NRF President Matt Shay notes, “While the future direction of interest rates and inflation remains uncertain, it’s clear that a strong job market and increases in real wages are continuing to support spending” (CNBC).
