Rising Cell Phone Bills Added to Inflation Pressure Behind the Fed’s Rate Hike

Higher cell phone bills are becoming an unexpected part of the inflation story.
Wireless service prices have been rising, adding pressure to consumer inflation at a time when the Federal Reserve is closely watching whether price growth is becoming persistent again.
That increase reportedly contributed to the inflation data that helped support the Fed’s decision to raise interest rates.
The issue matters because services inflation tends to be stickier than prices for many physical goods.
Even relatively narrow categories can influence the broader inflation picture when price increases are large enough.
For consumers, the result is another recurring monthly expense becoming more expensive.
For markets, it is a reminder that the Fed is not reacting only to major categories like housing and energy. Smaller pockets of persistent price pressure can also affect the path of monetary policy.