Thursday, March 30, 2023

The inflation rate in the US drops four tenths, to 6% in February

The interannual rate of inflation in the United States continued to drop in February, for the eighth consecutive month, and stood at 6%, four tenths below that of January, according to data provided this Tuesday by the Bureau of Labor Statistics (BLS, in English).

However, in monthly terms, consumer prices rose four tenths, at a time when the Federal Reserve (FED) is facing great scrutiny for its measures to curb inflation, and more so now after the bank’s debacle SVB and fears of a banking crisis.

Core inflation, which measures the rise in consumer prices minus food and energy prices, the most volatile, fell one tenth in February and placed its year-on-year rate at 5.5%, the lowest figure since December 2021. notes the BLS.

As the agency recalls, the inflation rate of 6% is the lowest since September 2021.

The inflation data is released at a key moment, in which it is closely analyzed whether the constant increases in interest rates carried out by the FED are having the desired effect of containing prices and to what extent they are affecting economic evolution.

In addition, it is also now being questioned whether tight monetary policy is contributing to recent fears of a banking crisis.

In fact, as a result of the collapse last week of Silicon Valley Bank, which had to be intervened by the authorities after its shares plummeted, several analysts expect the Fed to be forced to further reduce, or even pause, its increases. of the types.

The last one occurred on February 1, which was the eighth since March of last year, a rise of 0.25 points, which confirmed a slowdown in the increases.

With this rise, less than the previous rises, the rates stood in a range of 4.5% and 4.75%, the highest figure since September 2007.


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