June 24, 2024

U.S. inflation eases slightly, 5.0% year-over-year in December – 01/27/2023

1 min read
U.S. inflation eases slightly, 5.0% year-over-year in December – 01/27/2023

According to the PCE index released by the Commerce Department this Friday (27), inflation in the US eased slightly and stood at 5% in the 12 months to December.

According to the index, favored by the Federal Reserve (the federal, American central bank), prices rose 0.1%, the same as in the previous month, disappointing analysts who had expected stability.

Core inflation, which excludes volatile food and energy prices, rose for the first time since August to 0.3% from 0.2% in November. This variation was expected by the market.

In annual measure, core inflation was 4.4% in December and 4.7% in November, ever over 12 months.

Household income rose 0.2%, slightly lower than in November, while their spending fell 0.2%.

The central bank wants to bring inflation to 2% per annum. To try to achieve this, it has repeatedly raised its base interest rates, making borrowing more expensive. As a result, it encourages consumption and investment, reducing pressure on prices.

The PCE index, which represents the consumer price index (CPI), confirmed the downward trend, rising 6.5% over the 12 months in December, up from 7.1% in the previous month.

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© Agence France-Presse

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