The Consumer Price Index (CPI) for March released by Bureau of Labor Statistics on Wednesday showed prices continuing to rise faster than economists expected.
Rising 0.4 percent month-over-month, headline CPI inflation has surged 3.5 percent in the last 12 months as the White House made “Bidenomics” a central message for the administration.
Both the headline monthly and 12-month increases surpassed economists’ expectations of 0.3 percent and 3.2 percent, respectively.
Core CPI inflation — which excludes more volatile food and energy — saw an equal monthly advance of 0.4 percent and an annual increase of 3.8 percent. The data for core inflation also came in higher than expected.
According to the latest CPI print, surging costs for shelter and gasoline contributed more than half of the overall increase recorded in March.
What’s more, BLS noted that the 12 month headline CPI increase of 3.5 percent is “larger than the 3.2-percent increase for the 12 months ending February.”
No, inflation still isn’t coming “down” as President Biden says in repeated attempts to sell his economic policy to voters ahead of November.
“Stubbornly high inflation is due to Democrats’ reckless spending that’s bid up prices and anti-energy policies that have driven up costs throughout the supply chain,” Job Creators Network CEO Alfredo Ortiz remarked in a statement provided to Townhall. “Ordinary Americans and small businesses are paying the price in terms of far higher costs on everyday items and falling real incomes.”
“Continued high inflation also reduces the Federal Reserve's planned interest rate cuts, prolonging the credit crunch and threatening equity markets,” Ortiz added. “President Biden and congressional Democrats own the nation’s cost of living crisis.”
As Ortiz noted, both headline and core CPI inflation are well above the Federal Reserve’s target of just 2.0 percent. This reality is problematic to the Fed and its chair, Jerome Powell, which previously said multiple interest rate cuts were on the horizon in 2024.
With inflation continuing to surge — in some months accelerating — and beating estimates, there’s no economic rationale for rates to be reduced from their current level, the highest in 22 years.
This is a developing story and may be updated.