The Americans had to Reach deep into their pockets In March, as yet another key inflation index, prices hit a 40-year high.
The Personal Consumption Expenditure Price Index rose 6.6% for the year ended March. Commerce Department Reported on Friday. This was the highest rate since. Expired January 1982.To leave behind Statistics from February.
Energy prices rose in the first quarter after the war in Ukraine, up 33.9% for the year ended March. Food prices rose 9.2 percent during the same period.
Excluding food and energy spending, PCE inflation rose to 5.2%, slightly slower than the 5.3% recorded in February. The index is the Federal Reserve’s preferred measure of inflation, but a slight tick is unlikely to change the path of the lower Fed’s policy.
Central bank Interest rates began to rise. Last month, high inflation is expected to be contained, and rising rates are expected to be maintained Throughout the year. At next week’s much-anticipated policy meeting, the bank is expected to raise rates. Half a point.
Economists are optimistic that inflation was at an all-time high in the first quarter – but only the April figures could show any relief.
Just look at March, prices rose 0.9%, higher than in previous months, while core prices rose 0.3%, flat and as economists expect from February.
U.S. revenues also rose 0.5%, or 7 107.2 billion, as employers increased wages to retain and retain workers. Disposable revenue also increased 0.5%, or $ 89.7 billion, while consumer spending increased 1.1%, or $ 185 billion.
The Americans saved less, however: The personal savings rate fell to 6.2%, the lowest level since 2013.
Employment cost data released by Bureau of Labor Statistics Friday morning showed a 1.4 percent increase in compensation for the three months ending March, adjusted for seasonal swings, higher than expected.
This is a developing story. It will be updated.