The subject was delineated in February, according to the preferred index closely monitored by the Fed in order to shape its monetary policy. Thus, according to the US Bureau of Economic Analysis report, the underlying inflation as measured by the main index of personal consumer spending prices, which removes the volatile components of food and energy, increased by 0.3% from the previous month, according to the figures published on Friday, following a 0.5% measurement in January. Fed officials may be “spared” by the mild increase in the inflation rate of services. At the same time, inflation-adjusted consumer spending exceeded all estimates due to a higher wage increase over a year. The slower measurement of inflation is a welcome relief, since other measurements showed that price pressures intensified at the beginning of the year. Even so, Fed officials are looking for more evidence that inflation is in constant decline and in the meantime they are not in a hurry to reduce interest rates.
US: inflation slowed in February
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