(KNSI) — The consumer price index for last month came in hotter than expected at .4%, despite the Federal Reserve hiking interest rates last month to slow inflation.
ADP Chief Economist Nela Richardson says the latest data puts even more pressure on the Federal Reserve to raise interest rates again next month, but they need to be careful. “The Fed is trying to move as fast as it can but if it moves too fast it runs the risk of tightening too much which could be painful for the economy.”
Inflation shows no signs of slowing down, with prices up 8.2% from a year ago.
That hits consumers across a broad range of essentials like rent, food and groceries. This woman explained her family went from getting by to “we are scrimping and scraping by,” she says. “Instead of one grocery store now I shop three every week just trying to look for what’s on sale and what do we need for the week.”
The core inflation rate, which excludes food and energy prices, rose to 6.6%, the highest since 1982.
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