- The latest report from the Bureau of Labor Statistics shows inflation and consumer prices rose last month, sending stock futures downward.
Inflation in the U.S. remains higher than desired, according to the latest data released by the Bureau of Labor Statistics on Wednesday.
The March Consumer Price Index reported that inflation rose to 3.5 percent from March 2023 to March 2024, up from 3.2 percent in February. Consumer prices are also up 0.4 percent from last month, sparking concern that interest rates will continue to remain at decades high levels.
Financial analysts were holding out hope that the Federal Reserve could begin rate cuts at its June meeting. However, given the day’s news on the higher inflation rate, those prospects could shift to September or beyond.
“You can kiss a June interest rate cut goodbye,” wrote Greg McBride, chief financial analyst for Bankrate, in a commentary on the report.
News of the higher inflation rate sent stock futures downward, with the Dow tanking 478 points or 1.2 percent while the S&P 500 and NASDAQ declined 1.5 percent and 1.6 percent, respectively.
Among those line items showing an increase in the latest CPI reports were prices for food, shelter, energy, medical care and gasoline.
“The all items less food and energy index rose 3.8 percent over the last 12 months,” the CPI report noted. “The energy index increased 2.1 percent for the 12 months ending March, the first 12-month increase in that index since the period ending February 2023. The food index increased 2.2 percent over the last year.”
Frank Corder
