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Fed hits bulls-eye on inflation target
NAFCU Research Assistant Doug Christman. |
March 18, 2013 – The consumer price index and core CPI rose 2 percent in February on a year-over-year basis, putting the current level of inflation within the Federal Reserve's target range, giving the central bank ample room to extend its asset purchases and low-interest-rate policies.
On a monthly basis, overall CPI was up 0.7 percent in February, the first increase since October. NAFCU Research Assistant Doug Christman said the increase was due to rising energy prices, with gasoline prices increasing 9.1 percent.
Core prices, which exclude food and energy costs, rose 0.2 percent from the previous month and 2 percent from a year ago.
On a monthly basis, energy prices and food prices were up 5.4 percent and 0.1 percent, respectively. From a year ago, energy prices rose 2.3 percent; food prices increased 1.6 percent from a year ago.
NAFCU economists expect a moderate pace of inflation for the remainder of this year.