Sunday, February 9, 2025
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February Inflation Rises by 0.4%, Fed to Hike Rates Despite Banking Turmoil

As expected, the inflation gauge increased by 0.4% in February, and it rose by 6% from the previous year, according to the Labor Department’s report on Tuesday. These readings were in line with Dow Jones estimates. Despite recent turmoil in the banking industry, the Federal Reserve is likely to continue with another interest rate hike next week, given the inflation figures. The increase was driven by a rise in shelter costs and food prices, but energy costs fell, helping to keep the headline CPI reading under control. The Fed targets inflation at 2% and uses CPI as one of several measures to formulate monetary policy

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