Inflation Increased 3.2% Over the Last 12 Months For All Items, Larger Increase Than January
The inflation measure of the Consumer Price Index (CPI) in February 2024 was slightly higher than the previous report in January, with a 0.4% month-over-month increase and a 3.2% increase over the prior year. January’s 0.3% month-over-month and 3.1% annual gain and December’s similar reports of 0.2% and 3.4%, respectively, show the stickiness of inflation. Despite progress from the peak in 2022, the Federal Reserve has yet to reach its goal of 2% annual change. Consistent inflation moderation is needed before the Fed may consider lowering interest rates.
The economy and labor market remain strong, including here in Michigan. The state’s unemployment rate released on March 11 remains at 4.0%, the same level as a year ago, and nearly matches the national rate of 3.7% in January 2024. Additionally, December 2023’s Detroit Regional Chamber Michigan Voter Poll indicated that 80% of Michigan voters are not worried about losing their jobs, and 75% are not having trouble finding a good-paying job.
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