Inflation levels continue to remain elevated despite a slew of Federal Reserve Rate hikes, newly released federal inflation data shows.
The Bureau of Economic Analysis’s Personal Consumption Expenditure index, a top inflation marker for the Federal Reserve, rose 0.3 percent in March.
“From the same month one year ago, the PCE price index for March increased 4.2 percent (table 11),” the Bureau of Economic Analysis wrote in its report. “Prices for goods increased 1.6 percent and prices for services increased 5.5 percent. Food prices increased 8.0 percent and energy prices decreased 9.8 percent. Excluding food and energy, the PCE price index increased 4.6 percent from one year ago.”
Economists noted that inflation has slowed since its peak during the Biden administration but still remains high despite the Federal Reserve’s actions.
“Today’s data on persistent increases in the core PCE provides more evidence that the #Fed’s rate hikes aren’t nearly sufficient to return #inflation to 2%,” economist Peter Schiff wrote on Twitter. “If anything, without substantial cuts to government spending, the rate hikes add to the upward pressure on consumer prices.”
Republicans have repeatedly blasted President Joe Biden for higher prices, which have soared during his tenure. Biden will likely have to fend off these arguments, having just announced his bid for re-election.
“When President Biden took office, inflation was just 1.4% and the average price for a gallon of gas was $2.39,” U.S. Representative Richard Hudson, R-N.C., wrote on Twitter. “Now, inflation has not fallen below 5% in the last 12 months and the average price for a gallon of gas is $3.67. Americans can’t afford 4 more years of President Biden.”
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