In January, inflation in the United States showed moderate easing amid increasing concerns about US President Donald Trump’s plans for tariffs on imported goods in the context of the impact of appropriate measures to tighten Washington’s trade policy on the situation in the country’s economic system.
The personal consumption expenditures (PCE) price index, which is preferred by the Federal Reserve in the framework of measuring the dynamic of prices, rose 0.3% last month. At an annual rate, the corresponding figure was 2.5%. The relevant information was published by the United States Commerce Department on Friday, February 28.
Excluding food and energy prices, the core PCE rose 0.3% in January and was at 2.6% annually. Fed officials are more closely following the core measure as the best indicator of long-term tendencies.
The 12-month upwardly revised core measure in December was recorded at the 2.9% mark. Headline inflation decreased by 0.1%.
It is worth noting that the data released on Friday is in line with Dow Jones’ preliminary consensus forecasts. Fed Chairman Jerome Powell and his colleagues will probably refrain from discussing further interest rate cutting.
Personal income increased by 0.9% in January. It is worth noting that the preliminary forecasts provided for the growth of the mentioned indicator by 0.4%. At the same time, spending for the specified period fell by 0.2%. Preliminary forecasts provided for a 0.1% increase in this indicator.
The personal savings rate showed a sharp increase, rising to 4.6%.
As we have reported earlier, Donald Trump Accuses Fed of Creating Inflation.
