Tuesday, 01 April 2025 05:35

Inflation Rises and the Economy is Weakening According to Survey Data

Written by
Rate this item
(0 votes)

Economic data from the first quarter indicates slowing growth alongside rising inflation, raising concerns about stagflation. February’s PCE price index, the Fed’s preferred inflation gauge, showed its highest reading in a year, while inflation-adjusted consumer spending barely increased. 

GDP is now projected to shrink by 0.5% annually, as rising imports ahead of new tariffs weigh on growth. The University of Michigan’s consumer sentiment survey reflects increasing pessimism, with inflation expectations rising and job market concerns deepening. 

Meanwhile, Fed officials acknowledge that upcoming tariffs will likely push inflation higher, constraining their ability to cut interest rates. 


Finsum: With economic uncertainty mounting, Americans are bracing for a difficult year ahead, but they need financial products that can be robust to these risks. 

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top