Usa, inflation down for the tenth consecutive month
Inflation is the one and only enemy of all developed economies. Even in the United States it is being fought with interest rate increases by the Fed but now, although the trend is not yet acceptable, it is beginning to reverse course and constantly. Indeed, in April, it is still declining and for the tenth time in a row, according to the latest data from the Bureau of Labor Statistics. A very slight drop that saw prices rise by just 0.4%. However, the annual index fell from 5% to 4.9%. And so annual inflation also fell by a tenth to 5.5%. This steady trend is a clear indication that rate tightening is starting to pay off. It is useful to remember how inflation, in June 2022, had reached a record of 9.1%, never reached for forty years. Rapid hikes in gas and food prices had scuttled President Biden’s popularity.
Usa, houses, cars, petrol and trucks, the items with the fastest growing prices
What were the rumors that made the monthly index move upwards (albeit imperceptibly) in April? Houses, second-hand cars, petrol and trucks. 0.6% was the increase in fuel in general while groceries fell by 0.2%. Even if, on an annual basis, foodstuffs have increased overall by 7.7%. Inflation is still visible and rooted above all in services, even if signs of a slowdown are beginning to appear. Inflation has eased slightly since the middle of last year. “However, the pressure remains high and there is still a long way to go to bring it back to 2%” Federal Reserve Chairman Jerome Powell said. However, the latest data is good news for the work done on rates and could allow the Central Bank to put a stop to rate increases (five points more in just one year).
Subscribe to the newsletter
