Inflation in the USA unexpectedly increased significantly in March. Consumer prices rose by 3.5 percent compared to the same month last year, after 3.2 percent in February, the Labor Department announced on Wednesday. Economists surveyed by the Reuters news agency had only expected 3.4 percent. From February to March, prices rose by 0.4 percent. Experts had only expected an increase of 0.3 percent. The US Federal Reserve is counteracting inflation with a high interest rate policy and is aiming for a figure of two percent. After some aggressive increases, the US Federal Reserve paused several times and kept the key interest rate constant in the range of 5.25 to 5.50 percent. Economists do not expect any change for the interest rate decision on May 1st. Fed chief Jerome Powell recently confirmed that there is a prospect of a turnaround in interest rates this year. Inflation is on track to reach the Fed’s 2 percent target, although on a “sometimes bumpy path.”
Inflation in the USA is increasing again – economy
