Economics
U.S. Inflation & Price Pressures Report: March 2024
Report summary
Annual inflation cooled somewhat in January, but less than expected, highlighting the potentially bumpy road to bringing inflation down to the Federal Reserve’s target. In February, consumers’ demand softened, particularly for middle-income earners who have become as price conscious as the lowest income group. Supply chain pressures have eased considerably as pandemic-related factors fade, but recent supply disruptions are affecting consumers primarily through a small uptick in delivery delays.
Key Takeaways
- As inflation relief stagnates, more consumers walked away from or traded down on pricey goods and services in February than in previous months.
- Middle-income adults’ demand has fallen more in line with that of the lowest income group as these consumers increasingly rely on cost saving measures, while high earners fuel demand growth.
- Supply pressures remain well below their year-ago levels, but consumers are reporting a slight uptick in delivery delays in recent months.
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About the authors
Sofia Baig is an economist at decision intelligence company Morning Consult, where she works on descriptive and predictive analysis that leverages Morning Consult’s proprietary high-frequency data. Previously, she worked for the Federal Reserve Board as a quantitative analyst, focusing on topics related to monetary policy and bank stress testing. She received a bachelor’s degree in economics from Pomona College and a master’s degree in mathematics and statistics from Georgetown University.
Follow her on Twitter @_SofiaBaig_For speaking opportunities and booking requests, please email [email protected]
Kayla Bruun is the lead economist at decision intelligence company Morning Consult, where she works on descriptive and predictive analysis that leverages Morning Consult’s proprietary high-frequency economic data. Prior to joining Morning Consult, Kayla was a key member of the corporate strategy team at telecommunications company SES, where she produced market intelligence and industry analysis of mobility markets.
Kayla also served as an economist at IHS Markit, where she covered global services industries, provided price forecasts, produced written analyses and served as a subject-matter expert on client-facing consulting projects. Kayla earned a bachelor’s degree in economics from Emory University and an MBA with a certificate in nonmarket strategy from Georgetown University’s McDonough School of Business. For speaking opportunities and booking requests, please email [email protected]
