WASHINGTON (Reuters) – U.S. consumer rates unexpectedly rose in February however are likely to decrease in the months ahead as the coronavirus outbreak depresses need for some goods and services, surpassing cost boosts associated with shortages caused by disturbances to the supply chain.
A lady presses shopping carts during a sales occasion on Thanksgiving day at Walmart in Westbury, New York, U.S., November 28,2019 REUTERS/Shannon Stapleton
The report from the Labor Department on Wednesday also revealed a constant increase in underlying inflation last month.
Financial markets anticipate the Federal Reserve will cut interest rates once again at its policy conference next week. The U.S. central bank implemented a 50- basis-point emergency rate cut last Tuesday as the fast-spreading coronavirus fanned worries of an economic downturn in the U.S. and global economies.
The Labor Department said its customer rate index increased 0.1%last month, matching January’s gain, as increasing food and accommodation costs offset cheaper gasoline. In the 12 months through February, the CPI rose 2.3%. That followed a 2.5%dive in January, which was the greatest year-on-year gain because October2018 Financial experts polled by Reuters had anticipated the CPI would be unchanged in February and rise 2.2%year-on-year.
The coronavirus, which causes a breathing illness called COVID-19, has killed at least 31 people in the United States and sickened