Inflation in the US eased significantly in March. Inflation for goods and services fell to 5.0 percent from 6.0 percent in February, the Labor Department said in Washington on Wednesday. Experts surveyed by the Reuters news agency had expected 5.2 percent. The US Federal Reserve can celebrate the abating of the wave of inflation after a series of interest rate hikes as a stage victory. But it is struggling with stubbornly high core inflation, which excludes volatile energy and food prices. This rose to 5.6 percent in March from 5.5 percent in February. This development is seen as an alarm signal, since the upward trend in prices has evidently already spread to large areas of the economy and is threatening to solidify. The US monetary authorities headed by Fed Chairman Jerome Powell must now decide whether they will raise interest rates further at the beginning of May or pause them out of consideration for the economy and recession risks.
Inflation – US Inflation Moderates – Economy
