Inflation Surges, Fed Faces Tough Decisions

0:00The latest headlines, weather, and stories, right here on Anchorage News today. Consumer prices rose 2.4 percent in February compared to a year earlier, matching January's level, according to the Labor Department. Core prices, excluding food and energy, also held steady at 2.5 percent year over year. The lowest in five years, but still above the. Federal reserves 2 percent target. On a monthly basis, overall prices increased 0.3 percent, while core prices edged up to 0.2 percent. Their relatively calm picture changed fast with the U.S. and Israeli attack on Iran on February 28th, shutting down key shipping lanes in the Persian Gulf. Oil prices spiked near $120 a barrel before settling around $87 after President Trump's comments on a short conflict. Gas prices jumped sharply last month and are on track for 20 percent surge this month. Americans are filling the pinch, with grocery prices up 2.4 percent year over year, and clothing costs leaping 1.3 percent in.

1:05February alone. Businesses like frozen yogurt shops in supermarkets worry about passing on higher fuel and import costs from tariffs, and now this energy shock. Affordability is a hot political topic ahead of midterm elections. Economists warned March inflation could hit 0.9 percent monthly, the highest in four years, challenging the Fed's efforts. Positive notes include slowing rental inflation at 0.1 percent monthly and falling used car prices but broader effects from shipping and air fares may build. The Fed faces a tough spot next week, balancing weak job numbers, 92,000 jobs lost in February, unemployment at 4.4 percent against rising inflation pressures that could delay rate cuts. Uncertainty from the conflict means action might get pushed back further. A message from our sponsor supports today's story. Some people meditate. I just lay down and press play. S-O-L-I-SOLY-PILLOW.COM