Inflation In The US Is Expected To Peak

Inflation in the US is expected to peak. Inflation in the US, which will be announced tomorrow, may reach a new high.

Annual inflation may reach a new peak in March, well above the Fed's 2 percent target. This rise may bring the Fed's 50 basis point rate hike in May to the agenda. The US Federal Reserve raised interest rates for the first time in three years to combat high inflation last month. However, efforts to reduce inflation may take time. Although some price pressures, which increased during the pandemic period, started to decrease, price pressures continue in many areas. Economists participating in Bloomberg's survey expect the inflation data to be announced tomorrow to be 8.4 percent annually. This is the highest increase since 1982. Inflation is expected to increase by 1.2 percent on a monthly basis, the most since 2005. Economists expect inflation to fall to 5.7 percent in the last quarter of the year. Anna Wong, Yelena Shulyatyeva and Andrew Husby from Bloomberg Economics stated that inflation could be pulled below 7 percent in the last quarter. Annual inflation in the US rose to 7.9 percent in February, hitting a 40-year high.