Inflation rose to 6.6% in the 12 months to March in the United States and prices rose 0.9% between February and last month, according to the PCE index released Friday by the Commerce Department.
This indicator, which is the one that follows the Federal Reserve (Fed), thus remains at a maximum in 40 years.
The Fed will hold its monetary policy meeting next Tuesday and Wednesday, after which a new increase in interest rates is expected to ward off the inflationary spiral.
The other indicator inflation In the United States, the CPI published at the beginning of the month by the Department of Labor and a reference for calculating pensions, showed an increase in prices of 8.5% in 12 months to March, the largest increase since December 1981.
The two measures are calculated from different groups of goods and services, which explains the difference in percentages.
The PCE index reported increases in all sectors of goods and services.
“Energy prices increased 33.9% while the prices of food products rose 9.2%” in 12 months, the Department said in a statement.
The soaring rise in the energy sector was fueled by Russia’s invasion of Ukraine from February 24, and the economic sanctions that Western countries adopted against Moscow.
If the exceptions more volatile prices of food and energy, core inflation for the PCE remained equally high in March, at 5.2% at 12 months.
Consumer spending partly reflects this sharp rise in prices with increases of 1.1% over February.
Income, meanwhile, grew somewhat below expenses: +0.5% after 0.7% in February.
US consumer confidence improved in April
The confidence of consumers in the United States it improved last April although it remains at low levels, according to the final estimate from the University of Michigan published on Friday.
The index that measures the confidence of the consumer public in the economy rose 9.8% in April compared to March, reaching 65.2 points. The people surveyed expect a moderation in the price of gasoline.
This indicator of the health of the economy suffered from the uncertainty linked to the pandemic in 2020 and last year with the resulting inflationary spiral. More recently, rising interest rates weighed on consumer sentiment.
On the other hand, “a solid job market and rising wages“It strengthens the confidence of families.
Richard Curtin, the economist in charge of this survey, points out that the global health and geopolitical situation adds some uncertainty to the economic outlook.
In particular, he mentions “the growing involvement (of USA) in military support for Ukraine”, and new disruptions in supply chains due to the confinements imposed in China to combat covid.