People shop at a supermarket in Washington, DC on May 26, 2022. Americans are shocked by the summer sticker as inflation continues to rise.
Nicholas Gum | AFP | Getty Images
The Federal Reserve’s preferred inflation rate was 4.9% higher in April than a year ago, however, still high, indicating that price pressures may ease slightly. The Department of Commerce said Friday.
That increase in the key per capita expenditure price index was in line with expectations and reflected a slower pace than the 5.2% announced in March. This figure excludes volatile food and energy prices, which could play a key role in keeping inflation at a 40-year high.
On a monthly basis, the 0.3% increase was the same as in March, according to Dow Jones estimates.
Title PCE, including food and energy, rose 6.3% in April from a year earlier. This is also a decline from the 6.6% pace in the previous month. However, the monthly change showed a very significant decline, with an increase of just 0.2% compared to the 0.9% rise in March.
Inflation has been moving at an unprecedented pace for the past several months since the early 1980s. Prices rose due to the inability to supply as needed, due to unprecedented financial incentives Govt epidemicRestricted global distribution chains and War in Ukraine This pushed up energy prices and led to fears of food shortages.
In response to price pressures, the central bank has implemented two interest rate hikes for a total of 75 basis points, indicating that inflation is likely to continue until inflation approaches the central bank’s target of 2%.
The PCE numbers reported on Friday are lower than the consumer price index used by the Office for Labor Statistics. Headline CPI for April increased by 8.3% over the previous year.
The two numbers differ in that the CPI monitors data from consumers when the PCE is extracted from businesses. The central bank views PCE as a broad-based measure of what happens with prices at different levels.
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