Inflation data is out and it’s not looking good. The Consumer Price Index, which measures the change in price of a basket of goods and services, increased to 2.3% in April. This is above the 2% target that the Federal Reserve has set for inflation and continues the trend that started last year.
The Federal Reserve has been gradually raising interest rates since December 2015 in order to combat this trend and keep inflation at its desired rate. However, if inflation continues to rise, then an increase in interest rates may be necessary.