A letter, organised by industry group the British Retail Consortium (BRC) and addressed to Rachel Reeves, argues that limiting the tax burden on grocers would help tackle food inflation.
The Federal Reserve's preferred inflation measure slowed sharply in March, spotlighting the further stabilization of inflation in the first three months of 2025.
“This is the highest annual inflation rate since July 2024, following several months of easing inflation,” said Michelle Marquardt, ABS head of prices statistics.
Macklem said with inflation near the target and the economy in excess supply, the risk of higher energy prices fuelling inflation looks contained for now.
A plethora of economists and independent policy organizations have sounded the inflation alarm, warning that Trump’s tariffs will resuscitate inflation pressures.
The core measures of inflation, which are closely tracked by the Bank of Canada, however, stayed elevated, Statistics Canada said.
On a month-on-month basis, inflation rose by 0.3 percent, Statscan said.
Commodity funds also tend to beat inflation. Fixed-rate bonds typically underperform during high-inflation.
Disinflation
When the rate at which prices are rising slows, you get disinflation.
Ultimately, nearly all meeting participants viewed upside risks to inflation and downside risks to employment.
The headline annual inflation rate is forecast to slow to 2 percent by 2027.
The one-year inflation outlook slowed to 4.5 percent, down from the preliminary estimate of 4.7 percent—the lowest level since July.
Five-year inflation expectations fell to a four-month low of 3.4 percent from 3.9 percent in October.
Core inflation, which strips out volatile items, dipped from 2.9 percent to 2.7 percent, while RBA’s preferred measure of underlying inflation, the trimmed mean, also declined to 2.7 percent.
The thought is that the 25 percent inflation we’ve experienced over the past four years really hasn’t done any damage. Money is neutral to economic exchange and so is inflation.
So just chill!
The key to understanding the lack of inflation is to look at monetary aggregates. Tariffs do not cause inflation. There are other reasons we can use to criticize tariffs, but not inflation causation.
Lastly, economists say, politicians should let the Fed focus on fighting inflation rather than pressuring Fed officials to cut interest rates before inflation is tamed.
"At a time when food price inflation outpaces overall inflation, and Americans report that the price of groceries is their number one cost concern, pricing experiments used by companies like Instacart are making the situation worse," Groundwork Collaborative
This adds to consumer and business anxiety about inflation, with a new survey finding annual inflation expectations at the highest level in almost 50 years.
Inflation data released on Tuesday by Budapest's statistical office showed an annual inflation rate of 5.6 percent for February, while food prices rose 7.1 percent year-on-year.
Australia’s inflation rate has cooled to its lowest level in more than 18 months, strengthening expectations the Reserve Bank could begin cutting interest rates as early as next month.
Trump blamed the prior administration, saying that he "inherited the worst inflation in history.”
“The Democrats talk about affordability. They just say the word. It doesn't mean anything to anybody,” Trump said.
