The PCE index is the one favored by the Fed for measuring inflation, which it wishes to reduce to 2% (archives). KEYSTONE/FR171780 AP/ALLISON DINNER sda-ats
This content was published on March 31, 2023 – 17:12
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(Keystone-ATS)
Inflation slowed in February in the United States, to 5% over one year against 5.3% the previous month, the data for which has been revised (5.4% initially).
In a month alone, price inflation also decelerated, to 0.3%, according to the PCE index released Friday by the Commerce Department, slightly below analysts’ expectations, which forecast 0.4%, according to the consensus. published by briefing.com.
Core inflation, excluding food and energy prices, followed the same trend at 4.7% over one year, again slightly below expectations.
In addition, revenues rose by 0.3%, significantly less than the previous month, while their expenses rose by 0.2%. Analysts this time expected an increase of the same level, however expecting slightly stronger spending, up 0.3%.
The PCE index is the one favored by the Fed for measuring inflation, which it wishes to reduce to 2%. 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 institution warned that additional increases were to be expected, to cope with inflation which remains strong, even if the recent tremors in the financial sector could encourage caution.
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. Between price and rate increases, Americans are seeing their purchasing power decline.
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 6% over one year, against 6.4% in January. .
