Inflation rate ticks higher, could delay interest rate drop

The video discusses the recent rise in inflation, highlighting the Consumer Price Index (CPI) report which shows a 0.4% increase from February and a 3.5% increase from last March. This marks the third consecutive month of higher-than-expected inflation data. Economist Dr. Kishore Kulkarni explains that this trend may hinder the Federal Reserve's plans to lower interest rates, as the economy has not yet reached the target inflation rate of 2%. Key factors driving inflation include rising costs of gas, shelter, car insurance, and medical care, while food prices remain stable. Despite these increases, overall inflation has decreased significantly from its peak in June 2022.

What was the percentage increase in the Consumer Price Index (CPI) from February to March?

• 0.4%

• 1.2%

• 3.5%

• 9.1%

According to the economist, what is the Federal Reserve's challenge in adjusting interest rates?

• Balancing the budget deficit

• Reducing the unemployment rate

• Increasing the inflation rate

• Achieving a 2% target inflation rate

Which of the following is NOT mentioned as a main driver of the March inflation increase?

• Shelter

• Gas

• Technology

• Car insurance

How much more are consumers paying for food at home compared to a year ago?

• 0.4%

• 1.2%

• 3.5%

• 9.1%

By what percentage has overall inflation fallen from its peak in June 2022?

• 60%

• 30%

• 40%

• 50%