Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Bio
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
Bio
X •  LinkedIn
 
  The Consumer Price Index Rose 0.2% in February
Posted Under: CPI • Data Watch • Inflation
Supporting Image for Blog Post

 

Implications:  Consumer prices marched higher in February, continuing an acceleration in the pace of inflation. The persistent and consistent rise in prices gives the Fed plenty to think about when they meet next week.  The consumer price index rose 0.2% in February and is up 2.2% in the past year, marking a sixth consecutive month of year-to-year inflation above 2%.  But, in both the past three  and six months, the CPI is up at a 3.6% annual rate, showing clear acceleration.  Energy prices increased 0.1% in February, while food prices were unchanged. Remove these, and "core" prices rose 0.2% in February following January's 0.3% increase.  Core prices are up 1.8% in the past year, but are showing acceleration in recent months, up at a 2.5% annual rate over the past six-months and a 3.1% rate in the past three months.  In other words, both headline and core inflation stand above the Fed's 2% target, and both have been accelerating.  Housing costs led the increase in "core" prices in February,  rising 0.3%, and are up 2.8% in the past year. Meanwhile prices for services rose 0.2% in February and are up 2.6% over the past twelve months.  Both remain key components pushing "core" prices higher and should maintain that role in the year ahead.  One piece of disappointing news in today's report is that real average hourly earnings were unchanged in February.  Inflation-adjusted hourly earnings have been on the decline in recent months, down at a 0.7% annualized rate over the past six months. However, these earnings data do not include irregular bonuses – like the ones just paid by companies after the tax cut.  In addition, earnings are still up a modest 0.4% in the past year, while job growth is accelerating. We expect a visible pickup in wage pressures in the months ahead. A strong February jobs report, combined with today's inflation data suggests the Fed is on track to raise rates four time in 2018.

Click here for PDF version

Posted on Tuesday, March 13, 2018 @ 10:03 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
 PREVIOUS POSTS
M2 and C&I Loan Growth
Stay Invested: Economy Looks Good
The Bull Market: 9 Years and Counting!
Nonfarm Payrolls Rose 313,000 in February
The Trade Deficit in Goods and Services Came in at $56.6 Billion in January
M2 and C&I Loan Growth
5 Key Policies for Growth
The ISM Non-Manufacturing Index Declined to 59.5 in February
Harleys, Bourbon & Denim
The ISM Manufacturing Index Rose to 60.8 in February
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011
Expand 20102010

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.