Is the US Headed for More Inflation in 2024?

Inflation has received a lot of disappointing news in the last few weeks. First, we saw that the Consumer Price Index increased by 0.4 percent in February, which is the highest monthly increase since September of last year, leading to a higher-than-expected 3.2 % annualized inflation rate. Costs for shelter and gasoline, two of the most important categories for households, contributed to the majority ( 60 percent ) of the increase in prices in February. The Producer Price Index ( PI ) for final demand increased by 0.6 percent for the month, marking the highest monthly increase since last summer, and is also responsible for the highest annual increase rate since September. The second back-to-back regular boost since the summer of 2023 is now the two-month increase in import prices in a row. Finally, world oil prices, a critical input into general price ranges, have hit current period spikes above$ 80 per barrel in recent days….

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