LAST UPDATE: 15.41
The 8.5% increase in the consumer price index, a key US inflation index in March 2022, on an annual basis (ie compared to March 2021 prices), thus strengthening the belief that the federal central bank of The US Federal Reserve will raise its key interest rate “aggressively” by 50 basis points at its May meeting.
Analysts’ average estimate was that inflation would reach 8.4%.
In February, the corresponding value of the index was 7.9%.
On a monthly basis, ie in relation to February 2022, the index recorded an increase of 1.2%, exactly as analysts had predicted. In February, the increase compared to January was 0.8%.
The value of the index in March is considered by many analysts to be the culmination of the current inflation “wave”, as, as noted by the Bloomberg agency, reflects in addition to the effects of the pandemic on supply chains, the effects of Russia’s war on Ukraine in energy and food prices.
Although the Fed is moving towards an aggressive tightening of monetary policy, inflation is not expected to approach the 2% target of the central bank soon – given the new lockdown in China, the war in Ukraine, but also the higher demand for services such as p. χ. the travel.
At the same time, concerns are growing that inflation will plunge the economy into recession, either due to declining consumption in response to higher prices or due to excessive interest rate hikes by the Fed.
Source: Capital
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