Inflation rate decreased slightly in February, with prices rising by 0.4%, just below January's 0.5% rise.
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The core prices increased by 0.5% in February, slightly above January's 0.4% gain, and are closely monitored by the Federal Reserve as a gauge of underlying inflation pressures.
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Some economists anticipate that the Federal Reserve will pause its one-year streak of increasing interest rates at its upcoming meeting next week due to apprehension about other regional banks and boosting confidence in the financial system.
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Inflation has been decreasing over the past eight months but still well above the Fed's target of 2% annual inflation, with core prices rising by 5.5% compared to 12 months ago.
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Inflationary pressures are still deeply embedded in many areas of the economy, with rents, grocery prices, and expenses related to travel, dining out, and entertainment all increasing.
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Jan Hatzius, chief economist at Goldman Sachs, predicts that the Fed's policymakers will suspend their rate increases at the upcoming meeting and will likely resume them in May. He expects the key rate to rise to approximately 5.4% by the end of the year.
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The collapse of banks like Silicon Valley Bank and Signature Bank may inadvertently help the Fed in its fight against inflation by resulting in a lower pace of lending that could help to cool the economy and slow inflation.