Saturday, February 4, 2023

US price index shows slight decline

A report said prices for services excluding housing and energy rose 0.3 percent in October (the smallest increase in three months), down from 0.5 percent last September.

Said study noted that the underlying metric, a broad indicator of inflation that includes goods, services and housing but excludes food and energy, advanced 0.2 percent.

This last behaviour, highlighted sector analysts, is lower than the average figure of forecasts made in this regard by sector experts.

Federal Reserve (Fed) Chairman, Jerome Powell has pointed out on several occasions that the price index is perhaps the most important guide to gauge the outlook for the inflation scenario plaguing the country.

Powell recently noted that this spending category includes a wide range of services, from health care and education to haircuts and hospitality.

The official also highlighted that the meter constitutes more than half of the basic personal consumption price index, an indicator that measures changes in the cost of goods and services purchased by consumers without taking food and energy into account. provides.

Therefore, it may be the most important category for understanding the future development of core inflation, the Fed chairman said.

To combat high and persistent inflation in the United States, the country’s central bank implemented the most aggressive restrictive measures since the 1980s, raising the target range of its benchmark interest rate to between 3.75 and 4.0 percent. Experts warn.

In this regard, the Fed chairman said yesterday that the financial institution may reduce the rapid pace of monetary policy adjustments at its next meeting in December.

Despite this projection, Powell remarked that the US central bank’s fight against inflation is far from over, and that rates will continue to rise and remain at restrictive levels for some time.

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Nation World News Desk
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