Fed's favorite inflation gauge putting it in a 'huge bind': Economics professor Brenberg
Core prices, excluding food and gas, up 5.2% year-over-year in March
Fox News contributor and The King's College economics professor Brian Brenberg says food and oil inflation will go 'through the roof.'
Fox News contributor and The King’s College business and economics professor Brian Brenberg warned the Federal Reserve is about to be in a "huge bind" after its favorite method for measuring inflation just rose 5.2% year-over-year, on "Mornings with Maria" Friday.
"Maybe at a core level, things steady out, but at that more volatile level, which happens to be very core to most people, things do not look good," Brenberg told FOX Business’ Maria Bartiromo.
"That puts the Fed in a huge bind," the professor continued.
Core prices, which exclude the more volatile measurements of food and energy, soared by 5.2% in the year through March, according to the personal consumption expenditures price index data released Friday morning. That measurement is the Fed's preferred gauge to track inflation; it marks the 12 consecutive month the measure has been above the central bank's target range of 2%.
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Including food and energy, the inflation gauge jumped 6.6% in March from the previous year, beating out last month's measurement of 6.3% to become the fastest pace since 1981.
Fox News contributor and The King's College economics professor Brian Brenberg says the latest core inflation data puts pressure on the Fed to tighten rates even further. (Getty Images)
"That is a 40-year high. That is a real issue because, of course, that includes gas and food, which is what families buy, and that number continues to go higher," Brenberg said.
Brenberg raised further concerns over stagflation posing a "threat" to the U.S. economy.
"The problem is the things that people need to buy, which we like to exclude from the core number, are going through the roof and they show no sign of stopping because what's happening in Russia and Ukraine directly hits fuel and food," the professor explained. "To me, that's the ‘X Factor’ this year."
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March core PCE is up 5.2%, hitting below estimates of 5.3%. FOX Business' Cheryl Casone with more.
Markets are expected to react "very strongly" to Friday’s inflation numbers, Brenberg stressed, and put pressure on the Fed to tighten rates even further.
"They put themselves in a corner right now, and I really do not think they have an easy path forward this year, even if the market is seeing nine rate hikes," the economics expert argued. "I just do not see that as an easy path for them to travel."
FOX Business' Megan Henney contributed to this report.