Consumer inflation jumps 0.4% in February

This wasn’t a big surprise, with gas prices soaring in the last few weeks. From the Associated Press report:

The Labor Department says the consumer price index rose 0.4 percent in February, the largest increase in 10 months. Gas prices rose 6 percent to account for most of the gain. … Excluding food and energy, so-called “core” prices rose just 0.1 percent. In the past 12 months, consumer prices have risen 2.9 percent, the same year-over-year change as last month.

TIPS investors will get the benefit of the 0.4% increase, a mixed blessing but appreciated when overall interest rates are so low. That’s the reason we buy TIPS, to protect against inflation.

 

 

Advertisement

About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
This entry was posted in Investing in TIPS. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s