Fed Expects a ‘Mild Recession’ This Year – By Yuval Rosenberg (The Fiscal Times) / Apr 12 2023
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Grocery prices fell for the first time since 2020. (Reuters)
Inflation Falls to Lowest Level Since May 2021
Annual inflation continued to cool last month, falling to its lowest level in nearly two years. The Labor Department said Wednesday that its consumer price index rose by 5% year over year in March, down from 6% in February and the ninth straight monthly decline. Still, inflation remains well above the Federal Reserve’s target rate, and so-called “core” inflation rose, making an additional interest rate hike likely when the central bank’s policymakers meet in May.
The consumer price index rose 0.1% from the prior month, down from a 0.4% increase in February. The core CPI, which excludes volatile food and energy prices, rose 0.4%, down slightly from February. Over the last 12 months, the core index rose 5.6%, up from 5.5% as of February — the first rise in that measure since September.
“Today’s report shows continued progress in our fight against inflation with the 12-month inflation rate at the lowest level since May 2021,” President Biden said in a statement. “This progress follows last week’s news that our job market remains historically strong. Inflation has now fallen by 45% from its summer peak.”
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