US service sector inflation sticks with CPI rising to 0.4 in February

Service sector inflation could be forming a floor under inflation, something the Federal Reserve can’t allow, writes KPMG US Chief Economist Diane Swonk.

The Unites States’ consume price index (CPI) rose 0.4 percent in February, a slight acceleration from January. The year-over-year measure rose 3.2 percent from a year ago, up from 3.1 percent last month. Prices at the fuel pump rebounded, which dampened consumer attitudes in February. Shelter costs moderated a bit from last month, but remained elevated. The larger issue for the Federal Reserve is service sector inflation, which is more contingent on wage costs and looks to be getting stic...

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Authors: Diane Swonk

Published Date: 13 March 2024