The inflation in USA remained stable in April, after the rebound at the beginning of the year that instilled in the markets the fear that the high interest rates of the Federal Reserve (Fed) last longer.
He price index of personal consumption expenditures (PCE) increased 0.3% last month, the Department of Commerce Office of Economic Analysis, in line with the unrevised increase in March. In the 12 months through April, the PCE rose 2.7%, after advancing 2.7% in March.
The Underlying inflationa key measure for the economy that excludes the most volatile food and energy prices, also remained stable in the year-on-year measurement, at 2.8%, but in the month-to-month comparison it even had a minimal decrease, to 0.2 %.
The ex-president donald trumpwho hopes to return to the White House with the November elections, accuses the current president, Joe Bidenof being responsible for a persistent inflation. The rise in prices is a central issue for Americans and is a priority issue in the electoral campaign.
The data will not be enough to convince the Fed to lower their rates: “The inflationary context suggests that those responsible (at the central bank) will be patient,” said Rubeela Farooqi, chief economist at High Frequency Economics, to the AFP agency. They could “react if the labor market weakens more than expected, as that would have an impact on demand and the trajectory of GDP,” he added.
Meanwhile, the american spendingthe engine of the world’s largest economy, suffered strongly in April, with an increase of just 0.2% compared to March, announced the Department of Commerce. In March the increase was 0.7% compared to February. He revenue growth It also moderated, to 0.3% in April against 0.5% in March.
The US economy suffers the impact of the expensive credit. In the first quarter of this year, GDP expanded just 1.3% in annual projection (the 12-month estimate of maintaining the conditions at the time of measurement), compared to 3.4% in the fourth quarter of 2023.
The next monetary policy meeting of the Fed will take place on June 11 and 12 and the market expects rates to remain unchanged. The rise in inflation recorded at the beginning of the year delays the decision to cut rates.
Source: Ambito
