Data on consumer prices in February will inform the Federal Reserve’s deliberations over interest rates next week.
It’s appropriate for the central bank to respect that Labor has a range of objectives in its fiscal policy and is accountable to the electorate for its decisions.
The PCE price index for January was expected to show headline inflation at 2.9% and core at 3.1%.
PCE inflation in January was 2.8% year over year. The numbers predate the Iran conflict.
Inflation held steady in February as the headline figure for the Consumer Price Index remained at 2.4% year-over-year.
A big driving force was lower energy costs in January, which won’t last, and at least one other factor may have been redefined without mention.
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Treasury yields were lower Friday after fourth-quarter gross domestic product was revised down to an annual rate of 0.7%.