Inflation started to accelerate again in July in the United States, after two months of slowdown, and despite the efforts of the American central bank, the Fed, to weigh on economic activity and thus try to ease the pressure on the price.
Consumer price inflation was 3.3% year on year compared to 3.0% in June, according to the PCE index, the measure favored by the American central bank (Fed) for inflation, which it wants reduce to 2.0%.
“Goods prices fell 0.3% and services prices rose 0.4%,” detailed the Commerce Department, which released the data on Thursday.
Inflation measured by the PCE follows the same trend as that of the CPI index, published earlier in the month. The rise in the CPI had climbed to 3.2% year on year in July, against 3.0% in June.
Over one month, PCE inflation was stable at 0.2%, in line with analysts’ expectations.
Excluding volatile energy and food prices, so-called core inflation is also accelerating, to 4.2% over one year from 4.1% in June, and is also stable over a month, at 0.2%.
The US central bank (Fed), whose mission is to slow inflation, has raised its key rates 11 times since March 2022. These, now at their highest in 22 years, are in the range of 5 .25 to 5.50%.
As a result, banks offer loans at higher rates to households and businesses, which are less inclined to consume or invest, which eases pressure on prices.
Economic activity is holding up despite this forced slowdown, and even accelerated a little in the 2nd quarter.
Household spending also increased faster in July (+0.8% against 0.6% the previous month), in particular to pay for financial and insurance services, as well as rents which have soared since the pandemic. , or buy pharmaceutical or recreational products.
But their incomes increased less than in June (+0.2% against +0.3%).
In the euro zone, inflation remains stronger than in the United States, and remained stable in August at 5.3% over one year, according to data also published Thursday, by Eurostat.
2023-08-31 13:15:43
#USA #inflation #rises #July #year #PCE #index
