{"id":569948,"date":"2023-04-12T20:47:27","date_gmt":"2023-04-12T17:47:27","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/five-takeaways-from-the-march-inflation-slowdown\/"},"modified":"2023-04-12T20:47:27","modified_gmt":"2023-04-12T17:47:27","slug":"five-takeaways-from-the-march-inflation-slowdown","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/five-takeaways-from-the-march-inflation-slowdown\/","title":{"rendered":"#Five takeaways from the March inflation slowdown"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a25780e91086\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a25780e91086\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/five-takeaways-from-the-march-inflation-slowdown\/#Prices_have_been_falling_despite_a_hot_labor_market\" >Prices have been falling despite a hot labor market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/five-takeaways-from-the-march-inflation-slowdown\/#Have_a_ham_and_egg_sandwich_food_prices_are_taking_a_dive\" >Have a ham and egg sandwich: food prices are taking a dive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/five-takeaways-from-the-march-inflation-slowdown\/#Inflation_could_fall_close_to_a_2_percent_rate_this_year\" >Inflation could fall close to a 2 percent rate this year<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/five-takeaways-from-the-march-inflation-slowdown\/#Fed_officials_are_disagreeing_over_rate_hikes\" >Fed officials are disagreeing over rate hikes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/five-takeaways-from-the-march-inflation-slowdown\/#Profits_are_cooling_along_with_inflation_but_companies_are_still_%E2%80%98sneaking_surplus\" >Profits are cooling along with inflation, but companies are still \u2018sneaking\u2019 surplus<\/a><\/li><\/ul><\/nav><\/div>\n<div>\n<p>The consumer price index (CPI) fell to a 5 percent annual increase in March from 6 percent in February, the Labor Department reported Wednesday, dropping a full percentage point as prices for goods ranging from fresh produce to automobiles became cheaper.<\/p>\n<p>That\u2019s the lowest level of annual consumer inflation since May 2021. Prices have been coming down since last June, when they topped out at a 9.1 percent annual increase.<\/p>\n<aside class=\"ad-unit ad-unit--mr1_ab\"><\/aside>\n<p><strong>Profit crunch:<\/strong> Inflation eases as corporate profits fall from record levels<\/p>\n<p>The Federal Reserve has been slowing economic activity and pushing the economy toward a recession in response to higher prices, but the significant progress in Wednesday\u2019s price report is likely to produce some diverging opinions among central bankers. Fed leaders were already torn over whether the bank should move ahead with rate increases or pause after a historically swift hiking campaign.<\/p>\n<p>Here are five takeaways from Wednesday\u2019s encouraging price report.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Prices_have_been_falling_despite_a_hot_labor_market\"><\/span><strong>Prices have been falling despite a hot labor market<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1400\" height=\"933\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/64303dbfc03cb4.55678357-e1681320943524.jpeg?w=900\" alt=\"A hiring sign is displayed at a restaurant in Prospect Heights, Ill., Tuesday, April 4, 2023. On Friday, the U.S. government issues the March jobs report. (AP Photo\/Nam Y. Huh)\" class=\"wp-image-3939231\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/64303dbfc03cb4.55678357-e1681320943524.jpeg 1400w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/64303dbfc03cb4.55678357-e1681320943524.jpeg?resize=876,583 876w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><sub><em>A hiring sign is displayed at a restaurant in Prospect Heights, Ill., Tuesday, April 4, 2023. On Friday, the U.S. government issues the March jobs report. (AP Photo\/Nam Y. Huh)<\/em><\/sub><\/figcaption><\/figure>\n<p>Inflation is traditionally associated with higher wages since labor costs represent the largest component of prices. But wages have not kept up with inflation in the current cycle, except for the lowest earners, who have been making more money relative to inflation.<\/p>\n<p>Some economists had been expecting to see a huge uptick in unemployment as inflation comes down, and the Fed is still expecting to see more than one million people put out of work this year, but so far that increase hasn\u2019t h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ened.<\/p>\n<p>The economy added 236,000 jobs in March and the unemployment rate decreased to 3.5 percent from 3.6 percent as the workforce grew in size, according to the latest jobs report from the Labor Department.<\/p>\n<aside class=\"ad-unit ad-unit--mr2_ab\"><\/aside>\n<p><strong>Still Hiring:<\/strong> Five takeaways from a strong March jobs report<\/p>\n<p>Meanwhile, inflation across various metrics has been coming down, with the personal consumption expenditures (PCE) price index falling to 5 percent and the \u201ccore\u201d CPI, which removes energy and food prices, dropping to 5.6 percent from a recent high of 6.6 percent last September.<\/p>\n<p>Real wages increased 0.2 percent in March from February, the Labor Department reported.<\/p>\n<aside class=\"ad-unit ad-unit--mr3_ab\"><\/aside>\n<p>Following inflation in the late 1960s, the Nixon administration responded with wage and price freezes, but that policy was swapped in favor interest rate hikes executed by the Federal Reserve during the Carter and Reagan administrations. Those hikes quelled inflation, but only by throwing the economy into a devastating recession.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Have_a_ham_and_egg_sandwich_food_prices_are_taking_a_dive\"><\/span><strong>Have a ham and egg sandwich: food prices are taking a dive<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1392\" height=\"787\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/eggs_prices_ap_0123.jpeg?w=900\" alt=\"\" class=\"wp-image-3827155\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/eggs_prices_ap_0123.jpeg 1392w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/eggs_prices_ap_0123.jpeg?resize=160,90 160w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/eggs_prices_ap_0123.jpeg?resize=300,170 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/eggs_prices_ap_0123.jpeg?resize=768,434 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/eggs_prices_ap_0123.jpeg?resize=1273,720 1273w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/eggs_prices_ap_0123.jpeg?resize=645,365 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/eggs_prices_ap_0123.jpeg?resize=320,180 320w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/eggs_prices_ap_0123.jpeg?resize=256,144 256w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/eggs_prices_ap_0123.jpeg?resize=512,288 512w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/eggs_prices_ap_0123.jpeg?resize=50,28 50w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/01\/eggs_prices_ap_0123.jpeg?resize=876,495 876w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><sub><em>Partially empty shelves with eggs are seen at a grocery story Tuesday, Jan. 10, 2023, in Orlando, Fla.. (AP Photo\/John Raoux)<\/em><\/sub><\/figcaption><\/figure>\n<p>Grocery prices led the way for the overall decline in the March CPI. Food prices rose 8.5 percent annually in March, down from 10.2 percent in February and off a high of 13.5 percent last August. Grocery prices are still much higher than they were a year ago and running well above the headline inflation number of 5 percent, but they\u2019re trending in the right direction.<\/p>\n<p><strong>Egg-cellent <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>:<\/strong> Monthly egg price decline is largest in 36 years<\/p>\n<aside class=\"ad-unit ad-unit--mr4_ab\"><\/aside>\n<p>Meat, fish and poultry prices declined 1.4 percent on the month off a high last spring of more than 14 percent annual inflation. The price of ham dropped 4.8 percent from February to March.<\/p>\n<p>Eggs prices fell off a cliff, at 10.9 percent lower, while butter prices declined by 6 percent.<\/p>\n<p>Bread prices are down 0.3 percent on the month and fresh biscuits, rolls and muffins are down 0.7 percent.<\/p>\n<aside class=\"ad-unit ad-unit--mr5_ab\"><\/aside>\n<h2><span class=\"ez-toc-section\" id=\"Inflation_could_fall_close_to_a_2_percent_rate_this_year\"><\/span><strong>Inflation could fall close to a 2 percent rate this year<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Some analysts are sounding very optimistic notes about the trajectory of inflation over the course of the year, arguing it could end up close to the Fed\u2019s 2 percent annual target.<\/p>\n<p>\u201cThis report leaves little doubt that the disinflationary process is well underway,\u201d EY chief economist Gregory Daco wrote in an analysis. <\/p>\n<p>\u201cSlower growth in final demand for goods and services, easing housing price inflation and moderate wage growth should combine in the coming month and lead to faster disinflation than expected by the consensus and Fed policymakers.\u201d<\/p>\n<aside class=\"ad-unit ad-unit--mr6_ab\"><\/aside>\n<p>Daco predicted inflation will fall to 2.7 percent by the fourth quarter of this year, which is very much in the range of the Fed\u2019s target 2 percent, though some economists say that\u2019s too low.<\/p>\n<p>Wednesday\u2019s slight uptick in core CPI to 5.6 percent from 5.5 percent may make projection less likely, but Daco said he still sees the core falling to an annual rate of 3.3 percent on the year.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Fed_officials_are_disagreeing_over_rate_hikes\"><\/span><strong>Fed officials are disagreeing over rate hikes <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1400\" height=\"787\" src=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?w=900\" alt=\"Federal Reserve Chairman Jerome Powell\" class=\"wp-image-3921180\" srcset=\"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg 1400w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?resize=160,90 160w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?resize=300,169 300w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?resize=768,432 768w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?resize=1280,720 1280w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?resize=645,363 645w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?resize=320,180 320w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?resize=256,144 256w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?resize=512,288 512w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?resize=640,360 640w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?resize=876,492 876w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?resize=960,540 960w, https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/03\/powelljerome_030723gn27_w.jpg?resize=50,28 50w\" sizes=\"auto, (max-width: 899px) 100vw, 876px\"><figcaption class=\"wp-element-caption\"><em><sub>Federal Reserve Chairman Jerome Powell discusses his semiannual Monetary Policy Report to Congress before the Senate Banking, Housing, and Urban Affairs Committee on Tuesday, March 7, 2023. (The Hill)<\/sub><\/em><\/figcaption><\/figure>\n<p>U.S. central bankers are not totally in lockstep with each other about whether they\u2019ll keep hiking rates.<\/p>\n<aside class=\"ad-unit ad-unit--mr7_ab\"><\/aside>\n<p>New York Fed President John Williams said Tuesday in an interview with Yahoo Finance \u201cinflation is still very high\u201d and that the Fed still has more work to do to bring down prices.<\/p>\n<p>\u201cJobs growth is actually quite strong still,\u201d he said. \u201cWe are seeing some slowing in the demand for labor. But the demand for labor is still very strong.\u201d<\/p>\n<p>But Chicago Fed President Austan Goolsbee suggested that it was time for the Fed to take a break.<\/p>\n<p>\u201cI think that at moments of financial stress like this, the right monetary policy is really caution and watchfulness and prudence,\u201d Goolsbee said Tuesday.<\/p>\n<p>The CME FedWatch prediction algorithm put the chances of a 0.25 percentage point interest rate hike at 66 percent on Wednesday and the the chances of no hike at 34 percent.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Profits_are_cooling_along_with_inflation_but_companies_are_still_%E2%80%98sneaking_surplus\"><\/span><strong>Profits are cooling along with inflation, but companies are still \u2018sneaking\u2019 surplus<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Companies have frequently acknowledged their increased pricing power during this inflationary cycle as well as the willingness of consumers to accept higher prices.<\/p>\n<p>While both profits and inflation are subsiding now, the initial demand-driven inflation that hit as a result of supply shocks has now fully reversed course, while profit margin-led inflation following a commodity shock continues.<\/p>\n<p>\u201cThe 2021 transitory inflation driven by demand is now deflation\u2014television prices are more than 21% below their post-pandemic high. The second inflation wave\u2014an energy supply shock\u2014is now disinflationary,\u201d UBS economist Paul Donovan wrote in a note Wednesday morning to investors.<\/p>\n<p>\u201cProfit margin-led inflation remains. As companies sneak profit alongside cost increases, profit margin-led inflation is likely to be stronger at the very start of the year when cost increases are most frequently passed on.\u201d<\/p>\n<\/div>\n<p>Copyright 2023 Nexstar <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/thehill.com\/business\/3946300-five-takeaways-from-the-march-inflation-slowdown\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The consumer price index (CPI) fell to a 5 percent annual increase in March from 6 percent in February, the Labor Department reported Wednesday, dropping a full percentage point as prices for goods ranging from fresh produce to automobiles became cheaper. That\u2019s the lowest level of annual consumer inflation since May 2021. Prices have been&#8230;<\/p>\n","protected":false},"author":1,"featured_media":569949,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/thehill.com\/wp-content\/uploads\/sites\/2\/2023\/04\/AP22269668737218-e1681321490324.jpg?w=1280","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[134344,134418,139855,73798,142376,134420,70550,142377,80445,140837,70551,71525,91261,76751],"class_list":["post-569948","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-administration","tag-congress-blog","tag-consumer-price-index","tag-defense","tag-egg-prices","tag-equilibrium-sustainability","tag-federal-reserve","tag-grocery-prices","tag-healthcare","tag-housing-prices","tag-inflation","tag-national-security","tag-recession","tag-sustainability"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/569948","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=569948"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/569948\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/569949"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=569948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=569948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=569948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}