At a macro level, the news on the inflation front is encouraging.
As expected, the inflation rate in February ran 6% from a year before. That’s a smidge better than the 6.4% rate we saw in January.
But for many households, things aren’t getting much easier. The cost for housing, for example, was up by 8.1% from a year ago.
Overall food prices rose by 9.5%. And when you look more closely, you see that some staples and expenditures remain astronomically expensive.
Eggs, for instance, were 55% pricier last month compared with a year ago.
Butter and margarine were up by 27%.
Air fares rose 26.5%.
Bread 16%.
Car insurance 14.5%.
Electricity 13%.
And pet products rose in cost by 11%.
Stir all that together and it’s clear many working families are still feeling the pinch — which is why an expected ninth rate hike is expected next week from the Federal Reserve.
There had been speculation Monday that the current difficulties in the banking sector could prompt the Fed to take a breather and wait until May for the next rate increase.
But with the so-called contagion apparently contained to Silicon Valley and Signature banks, most analysts expect the Fed to weigh in once again with a quarter-point gain.
Will that do the trick? Not immediately, to be sure. Our current wrestling match with inflation shows that consumer prices so far have been resisting the medicine served by monetary authorities.
Soon, though. At least that’s the hope.