By Le Figaro with AFP
Published on 06/30/2023 at 14:46, Updated on 06/30/2023 at 18:26
Compared to May 2022, consumer price inflation stood at 3.8%, compared to 4.3% the previous month. MICHAEL M. SANTIAGO / AFP
Inflation in the United States, which had rebounded in April, slowed again in May, according to the PCE index published Friday by the Commerce Department and which is favored by the American central bank, the Fed. Compared to May 2022, consumer price inflation stood at 3.8%, compared to 4.3% the previous month. Over one month, inflation fell to 0.1%, again slowing down compared to April. Monthly inflation is in line with market forecasts. Core inflation, which excludes food and energy prices and which is monitored more closely by the Federal Reserve (Fed), is also down, though less markedly, falling to 4, 6% over one year against 4.7% in April, and with a monthly price increase of 0.3%, again very slightly down compared to April (+0.4%).
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It is mainly services that are now driving the rise in prices, the latter having increased by 0.3% over one month while those of goods fell by 0.1%. As for the main daily household expenses, energy and food, their prices followed a divergent curve in April, down 3.9% over one month for energy but still slightly up for food ( +0.1%). Another measure of inflation exists, the CPI index, which is used in particular to calculate pensions. By May, it had also slowed to 4%, slowing month on month to 0.1%.
Two upcoming rate hikes
The Commerce Department also indicated that US household incomes rose 0.4%, compared to 0.3% in April. As for expenditure, it slowed down sharply: +0.1% against +0.6% the previous month. To slow inflation, the Fed has tightened its monetary policy significantly since March 2022, with ten consecutive increases for a total of five percentage points. The institution, however, decided at its last meeting, in mid-June, to take a break, while stressing that other increases were to be expected.
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A position reiterated on Wednesday by Fed Chairman Jerome Powell, who indicated that at least two rate hikes were still to come, possibly back-to-back, but that the Federal Reserve will determine its next hikes according to the evolution of the data. macroeconomics. The next meeting of the Fed is scheduled for July 25 and 26 and almost all the leaders of the institution had spoken in mid-June to consider a further increase at the next meeting.
2023-06-30 12:46:49
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