Annual inflation in the US accelerated to 2.5% – Kommersant
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US Department of Commerce Personal Consumption Expenditure Index increased at the end of February by 2.5% year on year. This is a key indicator for measuring the level of inflation in the country, which the Federal Reserve is guided by when making decisions on the level of interest rates. In January, this figure was 2.4%. At the same time, the monthly growth of the index was 0.3% versus 0.4% a month earlier.
A rise in the personal consumption expenditure index is likely to further delay key interest rate cuts by the Fed. Following the results of the March 2024 meeting, the US Federal Reserve Open Market Committee did not change the rate, keeping it in the range of 5.25–5.5%. Last time bid increased in July – since then, every Fed meeting has been accompanied by a comment from the regulator that further steps on the rate will depend on incoming data. To start lowering the rate, the Fed will need confidence that inflation is approaching the target of 2%. Before the publication of today’s data, the market expected that the decision to lower the key rate would be made no earlier than the fall.
Read more in the Kommersant article. “The rate will wait until September”.
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