Inflation Relief Checks live updates: 2023 COLA, student loan forgiveness

Inflation report on wholesale price showed higher than expected increase

While inflation is cooling, it has been persistent throughout the past year. The latest report on wholesale prices, what sellers get for their products, surpassed forecasts. While the pace was the slowest for a 12-month period since May 2021 at 7.4% from a year ago, the increase of 0.3% for the month was a tenth of a percent higher than forecast. 

Lower enery costs were offset by a surge in food prices, rising 38% but this is thought to be an anomaly and not a trend. Economist and markets will now turn their attention to the Consumer Price Index due out next week on Tuesday when the Federal Reserve will begin a two-day meeting to decide on the course of future interest rate hikes.

It is expect that policymakers could announce a 0.5% rise in rates, which would be part of a much anticipated pivot in the central bank’s strategy to bring rising prices under control. The chair Jerome Powell has cautioned that interest rates will have to stay elevated until inflation is brought to heel.