[Economics] Light at the end of the tunnel?: Fed hikes may be coming to an end

[Draeno]

 

 

 

12-month inflation moderated for February in the United States, standing at 5%, compared to 5.3% in January, according to the PCE index published on Friday by the Department of Commerce.

Excluding food and energy, the Fed's preferred inflation gauge — the personal consumption expenditures, or PCE, price index — rose 0.3% in February, slightly below the median estimate for a rise. of 0.4% obtained in a Bloomberg survey of economists. Headline PCE rose the same amount, the Commerce Department showed.

Family income advanced 0.5%, well below the increase in January, while their expenses grew 0.2%.

The PCE index is the one preferred by the Fed to consider the increase in prices, which it expects to bring to 2% in one year, for which it has repeatedly raised its reference interest rates as a way of making credit more expensive and thus discouraging consumption and the investment.

Consumer spending, adjusted for prices, fell 0.1% after rising an upwardly revised 1.5% earlier in the year.

It is worth remembering here that the typical measure of inflation, the consumer price index (CPI), reached 6% for February of this year in the United States. The next data release, corresponding to the March information, will take place on April 12.

This measurement completes eight months of consecutive declines, according to data from the US Bureau of Labor Statistics, as can be seen in the following graph.

 

https://www.elespectador.com/economia/la-luz-al-final-del-tunel-alzas-de-la-fed-podrian-estar-llegando-a-su-fin/