The Commerce Department on Friday reported that consumer prices, excluding food and energy, had risen 0.3% from January to February.
The prices had previously climbed 0.6% between December and January. However, consumer prices are still up 5% compared to 12 months ago. The department also reported that consumer spending rose only slightly in February, slowing down from January’s rate.
What does this mean? Friday’s report hints that inflation could be easing. The Federal Reserve has raised interest rates nine times since March of last year while trying to control inflation.
Two U.S. banks collapsed this month, which could factor into the Federal Reserve’s policymaking going forward.
This story originally appeared in WORLD. © 2023, reprinted with permission. All rights reserved.