President Joe Biden in Lanham, Maryland, February 15, 2023 (AFP/Archives/Mandel NGAN)
Inflation rose again in January in the United States, to 5.4% over one year against 5.3% the previous month, the data for which has been revised (5% initially), according to the PCE index published Friday by the Commerce Department and favored by the US central bank (Fed).
In just one month, price growth is also accelerating, at 0.6%, above analysts’ expectations of a 0.4% rise in January, according to analyst consensus published by briefing.com .
This stronger inflation than expected, however, is concentrated “in financial and professional services as well as health, sectors in which it should not persist”, assured, in a note, Ian Shepherdson, chief economist for Pantheon Macroeconomics.
“We have made progress but there is still work to be done,” US President Joe Biden said in a statement, “We have continued to make progress…but, as I have said for a long time, it can there will be steps backwards. We are, however, facing the global economic difficulties from a position of strength”.
Core inflation, excluding food and energy prices, followed the same trend, at 4.7% over one year, also above expectations.
“The underlying index rose 4.1% over the last three months at an annualized rate, which represents the smallest increase since November 2021. But inflation in services remains solid and the decline has not started yet,” Mr. Shepherdson added.
In addition, revenues increased by 2%, the strongest increase in recent months, their expenses following the same trend at +1.8%.
Analysts were counting on a rebound, both in income and expenditure, but rather anticipated increases of, respectively, +0.9% and +1.3%.
The Fed’s key rate (AFP/Archives/Patricio ARANA)
“All of this data, along with higher inflation, means the Fed will likely raise these rates more” than has been envisaged so far, Robert Frick, economist for Navy Federaol Credit Union, said in a commentary. .
PCE inflation is the one favored by the American central bank (Fed), and which it wants to bring back to around 2%.
To achieve this objective, it has been raising its key rate since March. This, which was then within a range of 0 to 0.25%, now stands at 4.50-4.75%. And the institution warned that additional increases were to be expected, in the face of inflation that remains strong.
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 January, to 6.4% over one year, against 6.5% in December, accelerating however over one month for the first time since September, to 0.5% against 0.1%.
© 2023 AFP
Did you like this article ? Share it with your friends with the buttons below.
