Business
US Consumer Prices Rise Faster Than Expected, Impact of Rising Interest Rates on Inflation
"US Consumer Prices Outpace Expectations, Indicating Inflation Control Stalls. March inflation at 3.5%, up from 3.2% in Feb. Rising interest rates aim to stabilize prices, with Fed's key rate highest in 20+ years."
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Originally published by barbadostoday.bb (opens in new tab)
Consumer prices in the US rose faster than expected last month, in a sign that the fight to slow inflation has stalled.
Prices rose 3.5% over the 12 months to March, up from 3.2% in February, the US Labor Department said.
Higher interest rates help stabilise prices by making it more expensive to borrow for business expansions and other spending. In theory, that in turn slows the economy, and eases the pressures pushing up prices.
But the Federal Reserve’s key interest rate is now set at the highest levels in more than two decades, in the range of 5.25%-5.5%.
