US inflation accelerates to 2.7% in March ahead of Fed meeting
The personal consumption expenditures (PCE) price index in the United States accelerated to 2.7% in March from 2.5% in February, the U.S. Commerce Department reported today.
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Economia PCE
The increase in annual inflation in the United States, according to the PCE index, is known as the Federal Reserve meeting approaches, which should encourage it to remain cautious before starting to lower interest rates.
Analysts expected an acceleration to 2.6%, according to the Market Watch consensus.
However, in monthly terms, inflation remained stable at 0.3%, as expected.
Next week, the US Federal Reserve meeting will be held, where the upcoming monetary policy decisions will be discussed and presented.
Core inflation, which excludes volatile food and energy prices, also remained stable at 0.3% in monthly terms, but rose 2.8% year-on-year.
US household income, in turn, posted stronger year-on-year growth in March than in February, rising 0.5%, compared to 0.3% in the previous month.
However, in monthly terms, the increase in US spending remained at 0.8%, according to a statement.
These figures indicate that "the economy is continuing to expand and that inflation is high," commented Rubeela Farooqi, chief economist at High Frequency Economics.
The PCE inflation index is the indicator that the US central bank (Fed) wants to fall to 2%.
The acceleration of inflation in the US should encourage the Fed to be patient and keep interest rates at their current level of 5.25%-5.50%, the highest in 20 years, "for longer," to prevent prices from rising again, the economist points out.
Read Also: Europe faces "a great sacrifice in the fight against inflation", says Centeno (Portuguese version)
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