Meanwhile in reality.....
Inflation is down more than expected. Even negotiated wholesale prices for eggs “declined sharply”. It may not have been on day one, but eight weeks is pretty effing fast to address elevated food prices, inflation, and making substantive steps toward peace to Ukraine.
US inflation cooled in February
Inflation slowed more than expected in February and cooled for the first time in four months, but that progress may be short lived as President Donald Trump ramps up his trade war, which threatens to increase prices for Americans.
The Consumer Price Index, which measures price changes across commonly purchased goods and services, was 2.8% for the 12 months ended in February, a cooldown from the
3% annual rate notched in January, according to data from the Bureau of Labor Statistics released Wednesday. On a monthly basis, prices rose 0.2%, versus 0.5% in January.
Economists were expecting inflation to slow for the month amid falling gas prices and continued disinflation in housing-related costs. FactSet consensus estimates called for prices to rise 0.3% from January and 2.9% annually.
US stocks rallied Wednesday after the report was released, bouncing back after
three weeks of declines. The Dow gained 140 points, or 0.3%, the S&P 500 rose by 1.1% and the Nasdaq Composite was 1.9% higher.
February’s inflation numbers came in better than expected thanks in part to two big — and very welcome — reasons: Grocery prices were flat for the month and gas prices fell.
Egg inflation slows
Consumers got some relief on the egg front as well.
Egg prices, which have soared because an ongoing bout of avian flu is ravaging the industry, rose 10.4% for the month, a cooler reading than the 15.2% increase logged in January. Still, egg prices remain high, up 58.8% from a year ago.
The US Department of Agriculture
last week noted that negotiated wholesale prices for eggs “declined sharply” as outbreaks have slowed, providing some breathing room for unaffected producers to fill gaps in supply.
