Saturday, April 1, 2023

The rise in prices in the United States moderates to 5% in December

The United States personal consumption expenditure price index, the statistic chosen by the Federal Reserve (Fed) to monitor inflation, grew by 5.0% year-on-year in December, with a moderation of half a point compared to November, has revealed this Friday the Office of Economic Analysis of the Government.

The underlying index, which excludes food and energy prices from its calculation due to their greater volatility, closed the last month of 2022 with an increase of 4.4%, three tenths less than the previous month.

In monthly rates, the general variable of the index experienced an advance of 0.1%, the same as in November, while the underlying variable rose one tenth to 0.3%.

The high levels of inflation due to the ‘post-covid’ macroeconomic conditions and the war in Ukraine have negatively affected GDP growth.

To counter rising prices, the Federal Reserve raised interest rates by a half point to a range of 4.25% to 4.5% last December. The next revision of this figure will be announced on February 1, the day the Fed officials will meet again.

In addition, this Thursday it was learned that the world’s leading economy grew by 0.7% in the fourth quarter of 2022, one tenth less than in the previous quarter. In the year as a whole it advanced by 2.1%.


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