WASHINGTON.— La inflation rate in the United States went up once more month of March and grew three tenths, up to 3.5%, an increase that confirms the vision of the Federal Reserve (Fed) that it will not be easy to bring it down to 2% and that it might delay the interest rate drops.
The Bureau of Labor Statistics (BLS, in English) of the United States reported this Wednesday that consumer prices rose four tenths compared to February, the same increase they registered a month before.
Meanwhile, core inflation (without energy or fresh food), a key data that the Fed analyzes to make its decisions on interest rates, remained at 3.8% in year-on-year terms and rose four tenths in monthly terms.
Half of the rise in prices was due to the housing indices (which registered a monthly increase of four tenths and accumulated a year-on-year increase of 5.7%) and gasoline (a monthly increase of 1.7% and a year-on-year increase of 1.3%). .
The energy index as a whole rose 1.1% during the month and accumulated a year-on-year increase of 2.1%, while food rose one tenth in March compared to February and 2.2% year-on-year.
Second consecutive year-on-year increase
This is the second consecutive year-on-year increase of prices following they rose one tenth in February, a situation that confirms the warning of the president of the Fed, Jerome Powellthat it will be difficult to lower inflation in a sustained manner.
After the eleven increases made since March 2022, the Fed has maintained interest rates since July of last year in a range of between 5.25% and 5.5%, its highest level since 2001.
Still waiting for the decline in the price to consolidate rate of inflation and its goal remains to return it to 2% as soon as possible.
Even so, the president of the US central bank has explained that he will not wait to reach that figure and, if the economy evolves “in general terms as expected”, it will be appropriate to begin reducing rates “at some point this year”, he pointed out. at a recent public event.
But it will not be in a hurry to lower rates, as it has insisted, since the Fed will not do so until it has sufficient confidence, and data such as the one known today might delay the decision.
“We do not expect it to be appropriate to reduce our rate until we have greater confidence that inflation is sustainably falling towards 2%,” Powell insisted.
The regulator’s next meeting will take place between April 30 and May 1.
In addition to inflation, the Fed analyzes other data such as unemployment. The Bureau of Labor Statistics reported last week that unemployment fell one tenth in March compared to February, to 3.8%; The net creation of new jobs rose once more and 303,000 were created, 33,000 more than those generated a month before.
A figure much higher than the 231,000 net jobs created per month on average in the previous twelve months and which confirms the strength of the labor market, despite high interest rates.
You might also be interested: “Inflation figures in the US hit the New York Stock Exchange and the Dow Jones falls 1.32%”
Related news
#Inflation #rose #yearonyear #March
2024-05-07 03:01:41
