Service sector inflation becomes more entrenched in United States

Given that the services sector is a much larger share of the economy, the latest inflation news is a big disappointment to Federal Reserve officials who expected to see further progress, writes KPMG US Senior Economist Kenneth Kim.

United States’ (US) inflation came in hot. The consumer price index (CPI) rose 0.4 percent in March, the same increase as February and above the consensus expectation for a 0.3 percent increase. Higher energy prices and shelter costs contributed to about half of the rise in inflation, similarly to last month. Fuel prices rose 1.7 percent and housing costs increased 0.4 percent. The CPI index rose 3.5 percent from a year ago in March, up from 3.2 percent in February. The core CPI, which ex...

Sign in below or register now to read the full article

Authors: Kenneth Kim

Published Date: 11 April 2024