the problem of inflation US U.S didn’t let up in February, as another key price-monitoring measure rose to its highest in more than 40 years.
The Personal Consumption Expenditure (PCE) Price Index rose 6.4% in February from a year earlier. It was the biggest increase since January 1982, the Center for Economic Analysis reported on Thursday (31).
In February, the indicator rose 0.6%. The core of the PCE, which excludes food and energy and is used by the Federal Reserve as a reference for monitoring inflation in the United States, it rose 0.4%, in line with market forecasts. In 12 months, core PCE rose 5.4%, the highest since 1983.
Consumer spending, which accounts for more than two-thirds of economic activity, slowed sharply in February, according to the Commerce Department.
The advance was 0.2%, but economists had forecast a rise of 0.5%. The January figure was revised up to an increase of 2.7% from the 2.1% reported earlier.
Higher prices for gasoline, rent and food are forcing households to cut costs on other goods and services.
In a separate report, the Department of Labor said that initial requests for assistance fromunemployment increased by 14,000 to 202,000 seasonally adjusted for the week ended March 26. Economists consulted by Reuters projected 197,000 orders in the period.
With information from Reuters
Source: CNN Brasil
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