I’m catching up on yesterday’s US inflation report. The pundits say it’s now 50-50 that we get one interest rate cut by mid-2025.
(As of today, the federal funds rate is 4.33%. This is within the target range of 4.25% to 4.50% set by the Federal Reserve).
Alan Rappeport and Colby Smith write for the New York Times:
Inflation figures released on Wednesday showed that consumer prices ticked up unexpectedly, rising at an annual rate of 3.0 percent in January. Core inflation, which excludes volatile food and energy prices, jumped 3.3 percent on a yearly basis. Prices also rose 0.5 percent on a monthly basis.
…
As of January, a dozen eggs averaged $4.95, up from less than $3 several months ago. Egg prices are up nearly 53 percent over the last year. And that’s likely to worsen amid an outbreak of avian flu, which has led to an egg shortage as farmers cull their flocks to prevent the disease from spreading.
