2023-07-28 12:47:35
(Washington) Inflation slowed sharply in June in the United States, to 3.0% year on year from 3.8% the previous month, falling to the lowest since March 2021, according to the PCE index, a measure favored by the American central bank (Fed), which it wants to reduce to 2.0%.
Over one month, however, price increases accelerated slightly in the United States, to 0.2% in June once morest 0.1% in May, the Commerce Department announced on Friday.
This is in line with what analysts expected.
Excluding volatile energy and food prices, so-called core inflation also slowed over one year, to 4.1% from 4.6%, and over one month, to 0.2 % versus 0.1%, as expected.
Good news for Americans’ wallets, food prices fell by 0.1% over one month. Energy prices, on the other hand, jumped 0.6%.
Moreover, household income rose less quickly in June than in May, gaining 0.3% once morest 0.5% the previous month (data revised upwards). The increase in income is always due to the increase in wages.
Their spending increased stronger, up 0.5% in June once morest 0.2% in May (revised upwards). Among the main expenses of Americans last month: financial services, cars, or their rent and bills.
Another measure of inflation, the CPI index, which refers to and on which pensions are notably indexed, was published earlier in the month. It also stood at 3.0% over one year, also its lowest since March 2021, and had accelerated slightly over one month.
To slow inflation, the Fed has been raising its key rates since March 2022. As a result, banks are offering loans at higher rates to households and businesses, which are then less inclined to consume or invest, which relieves pressure on price.
The Fed thus carried out an 11e increase, placing its main key rate in the range of 5.25 to 5.50%.
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