Inflation rate in the USA falls to 3.1 percent
The main driver of this development is the fall in fuel prices, which fell significantly by 6.0% year-on-year in November.
Compared to the previous month of October 2023, however, consumer prices rose slightly by 0.1% in November. This was just above the expectations of analysts, who had expected prices to stabilize again.
Core inflation, which excludes volatile food and energy prices, remained unchanged compared to October at 4.0 percent, the lowest level in more than two years.
Consumer prices in the US skyrocketed last year, as they did in many other countries - particularly due to the consequences of the coronavirus pandemic and the Russian war of aggression against Ukraine.
On Wednesday, the US Federal Reserve is due to make a new key interest rate decision, which is pursuing the long-term goal of an inflation rate of two percent, but at the same time has to weigh up the impact of its monetary policy on the economy. The majority of analysts assume that the Fed will leave interest rates at the current level.
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- The 3-month trend in consumer price inflation in the USA shows a decrease to 3.1%, with notable reductions observed in various sectors, including housing and clothing.
- The Ministry of Labor in Washington released data showing the inflation rate in November, indicating a modest improvement compared to the previous month.
- Inflation, as measured by the Consumer Price Index, has been a major concern for policymakers in Washington, particularly in relation to the impact on household budgets and consumer spending.
- Inflation in the USA has been a topic of much debate, with some economists arguing that a sustained period of inflation rates above 1% is detrimental to economic stability and growth.
- The latest data revealed that the inflation rate in the USA, as measured in percentage terms, has reduced from previous months, providing some relief for households and businesses in the USA.
- The decline in the inflation rate in the USA, as well as improvements in other economic indicators, has prompted calls for the US Federal Reserve to reassess its monetary policy, potentially leading to a reduction in interest rates in the near future.
Source: www.stern.de
