Fed Tempers Post-Stimulus Inflation Fears As Consumer Prices Jump Past Projections
04/13/21 AT 5:00 PM
With consumer prices rose past expectations in March, some experts are worried that President Biden’s stimulus has lit the fuse on inflation. The Federal Reserve has said it’s equipped to handle the threat, but investors are still nervous that the jump is more than a temporary price spike, CNN reported.
In total, prices rose 2.3% more in March 2021 than the year prior. That’s driven in large part by energy prices, with gasoline going up 22.5% the preceding year.
Even excluding food and fuel, the price rise of 1.6% was more than experts had predicted.