Reuters
US expected to report strong consumer price increases in February
U.S. consumer prices likely rose at a solid pace in February amid sticky rental housing costs, but economists are divided on whether the data will be enough to push the Federal Reserve to hike interest rates again next week after the failure of two regional banks. The report from the Labor Department on Tuesday, which is also expected to show goods inflation picked up in part due to an anticipated rebound in prices of used motor vehicles, will be published amid financial market turmoil triggered by the collapse of Silicon Valley Bank in California and Signature Bank in New York, which forced regulators to take emergency measures to shore up confidence in the banking system. It will also be released a week before the Fed begins a two-day policy meeting, and follow on the heels of a report last Friday showing a still-tight labor market, but cooling wage inflation.
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