The United States personal consumption expenditure price index, the statistic chosen by the Federal Reserve (Fed) to monitor inflation, stood at 5% year-on-year in February, which represents a drop of three tenths compared to to January, as revealed this Friday by the Government’s Economic Analysis Office.
The underlying index, which excludes food and energy prices from its calculation due to their greater volatility, closed the second month of 2023 with an increase of 4.6%, one tenth less than the previous month.
In monthly rates, the general variable of the index experienced an increase of 0.3%, half that in January, while the underlying variable also advanced 0.3%, two tenths less. Energy prices grew by 5.1%, while food became even more expensive, by 9.7%.
To face the rise in prices, the Federal Reserve raised interest rates by 25 basis points, to a range between 4.75% and 5%, on March 22. The next revision of this figure will be announced on May 3, the day the Fed officials will meet again.