The year-on-year rate of inflation in the United States it continued to drop in December, for the sixth consecutive month, and stood at 6.5%, six tenths below that of November, according to data published this Thursday by the Bureau of Labor Statistics.
In monthly terms, consumer prices fell by one tenth, at a time when it is closely watched whether the Federal Reserve’s (Fed) interest rate hikes have an effect on price containment in the US.
The gasoline index was, by far, the one that contributed the most to the monthly decrease in prices, falling 9.4% monthly, while the food index increased 0.3% during the last month of the year.
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As the BLS recalls, the inflation rate of 6.5% is the lowest since October 2021. Core inflation, which excludes energy and food prices, stood at 5.7% in its year-on-year rate, after rising three tenths this month.
The inflation data is released at a time when all eyes are on whether the Fed’s constant rate hikes are having the desired price-containing effect.
The last one took place last December, which was the seventh since March. Although it was half a point, compared to four consecutive increases of 0.75, the Fed has made it clear that the increases are not going to stop for now.
The next increase will be decided by the members of the Fed’s Federal Open Market Committee (FOMC) at their next meeting, which will take place on January 31 and February 1.
Data such as that of inflation known this Thursday will have a lot of weight in the future decisions of the regulator, as its president, Jerome Powell, has explained on numerous occasions.
With information from EFE
Source: Gestion
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