Contrary to what international markets expected, March inflation in the US worsened and stood at 3.5%, once again far from the target range and three tenths above the previous interannual record of 3.2% that was achieved in February .
The high price of gasoline and mortgages fueled the Consumer Price Index (CPI), according to the Bureau of Labor Statistics (BLS) of the North American country. Thus, the record for the last 12 months until March is the highest in the last semester.
Core inflation, which leaves food and energy aside, did not give way either: 0.4% more than in February and 3.8% more than a year ago.
“Housing and fuel prices remain too high, although the values of household items, such as milk and eggs, are lower than a year ago,” President Joe Biden risked in a statement.
This rebound further complicates the work of the Federal Reserve (Fed) to return prices to the target range of between 2% and 3%, but it clears up some of the uncertainty regarding its next meeting in June, in which several analysts were already anticipating a new rate cut.
The minutes of the bank led by Powell show that the Fed is in no rush to cut rates as long as inflation continues. The question now is whether he will make the decision at his next meeting in September.
And how does it affect Peru?
Decisions about the price of money that the Fed North American also influence the monetary policies of other economies in the world, such as those of the Central Reserve Bank of Peru (BCRP).
Thus, the confirmation of inflation and possible delay of the rate cut in USA It boosted the price of the dollar in our country, a type of safe haven asset, towards S/3.7180.
Recently, Economist Kurt Burneo argued in a column in La República that the Peruvian reference interest rate would be “autonomous” from the decisions of the US central bank. in a “reckless” decision because there is enough foreign currency “sufficient to face greater (expected) volatility in the exchange rate.”
Consulted for this note, BCRP sources ruled out that meetings such as the one held today by the board chaired by Julio Velarde could leave the “US factor” aside when modifying local reference rates.
“The bank takes into account the movement of a set of indicators, not only in the US, but in Europe and the warming of the global economy,” said the source.
Keys
Rebound. The Fed has raised its official interest rate by 5.25 percentage points since March 2022.
Fear. The three most important stock exchanges in New York did not take long to respond to the news: Dow Jones fell more than 500 points; and both Nasdaq and S&P 500 lost 1% each.
Spikes. The DXY was trading at 1,034.975 (+1.01%) at press time.
Source: Larepublica
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