Elected officials, investors, and everyday households await fresh inflation data on Wednesday that is set to reveal whether the fight to cool price increases remains mired in a rough patch.
Price increases have cooled dramatically from a peak of about 9%, but inflation still stands more than a percentage point higher than the Federal Reserve’s target rate of 2%.
A spike in housing and gasoline prices at the outset of this year has helped prolong the nation’s bout of elevated inflation. Meanwhile, economic performance has been robust, boosting consumer demand and putting upward pressure on prices.
Economists expect the inflation rate to have increased 3.5% in March compared to the same month a year ago.
The finding would mark an acceleration from the 3.2% annual inflation rate recorded in February, reversing some of the progress achieved in a two-year inflation fight undertaken by the Fed.
At a meeting last month, the Fed opted to keep rates highly elevated in response to stubborn inflation. The Fed Funds rate remains between 5.25% and 5.5%, matching its highest level since 2001.
