2023-04-28 12:52:31
Inflation slowed in March in the United States to 4.2% over one year, against 5.1% the previous month, the data for which was slightly revised (5% initially), according to the PCE index. The latter is favored by the Federal Reserve (Fed), the American central bank.
In just one month, price increases also slowed further, to 0.1%, in line with analysts’ expectations, according to the consensus published by briefing.com. So-called underlying inflation, excluding food and energy prices and which is the data particularly observed at the Fed, is also down but less rapid and now exceeds headline inflation, at 4.6 % over one year, against 4.7% a month earlier, the Commerce Department said on Friday.
Over one month, core inflation is 0.3%, again in line with expectations. The PCE index is the one favored by the Fed for measuring inflation, which it wishes to reduce to 2% per year. To achieve this objective, it has been raising its key rate for the past year. This, which was then within a range of 0 to 0.25%, now stands at 4.75-5%. And the monetary institution warned that additional increases were to be expected, to cope with inflation that remains strong, even if the recent tremors in the financial sector could encourage caution.
It is expected to raise rates again at its next meeting, scheduled for Tuesday and Wednesday, with the market broadly expecting another 0.25 percentage point hike. This growth increases the interest rates on loans granted by banks to households and businesses. When borrowing is more expensive, consumption slows, relieving pressure on prices.
Another measure of inflation, the CPI index, which is also a reference and on which pensions are indexed, for its part showed a slight slowdown in February, to 5% over one year, against 6% in February. Household income for its part increased by 0.3%, again slowing down compared to the previous month, while expenditure remained stable.
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