Posted 1/26/2024, 6:31:00 PM
Inflation Soars Higher Than Expected in 2022, Forcing Fed to Play Catch-Up with Rate Hikes
- Inflation rose more than expected in 2022, catching the Fed and Wall Street off guard and forcing more aggressive interest rate hikes
- The surprise came from annual revisions to the consumer price index showing inflation hadn't slowed as much as thought
- Economists are wary of another surprise with the upcoming CPI revisions, though expect changes to confirm disinflation
- Barring a shock, Fed likely to start cutting interest rates by spring, benefiting borrowers
- January CPI will show if companies raising prices at the start of 2023 causes an inflation spike