The WSJ reports on the CPI increase reported today:
Consumer prices jumped 0.6% in March from February, the Labor Department said Wednesday, mostly because of higher energy costs. But even excluding the volatile food and energy categories, “core” prices rose a relatively sharp 0.4%, after a 0.3% increase in February. The two-month increase in core prices is the largest in four years, according to Nomura Securities.
There’s some discussion as to how much the hotel industry has skewed things… needless to say prices rise for the spring.
Before the Fed decides whether more aggressive rate increases are needed, it will likely consider one-time effects in the latest report, and await the Commerce Department’s lesser known price index of consumer expenditure, which the Fed considers a better gauge of the cost of living.
..ironically enough, my macroeconomics course has never once mentioned such an index. Good thing I spend more time online then in class, right?