The annual rate of inflation in the United States it dropped again in Aprilfor the tenth consecutive month, and stands at 4.9%, a tenth less than in Marchaccording to data released Wednesday by the Bureau of Labor Statistics (BLS).
As inflation continues to decline, so will households and businesses I still feel the sting of the high prices and the continuing consequences of the banking crisis.
In monthly terms, however, prices have increased, four tenths. This data will shape the Federal Reserve (Fed) to decide whether to continue raising interest rates or stop.
The Fed raised rates by 0.25% at the end of March; a measure that sought a delicate balance between fight inflation while tackling the turmoil in the banking and financial system in recent weeks. The rate is now between 4.75% and 5%.
There has been significant downward progress in inflation since July last year, when the consumer price index hit 9.1%.
But politicians still fear that inflation could become a permanent threat to workers and even families face tighter credit conditionsrising loan payments and uncertainty about a recession.
“Going back to 2% is going to be a bumpy ride,” Andrew Patterson, senior international economist at Vanguard, told the Washington Post.
He pointed used car priceswhich could start to rise as prices rise in the wholesale used and new car market, adding, “The nuances are important, so it’s important to look at this data in detail.”
According to the Post, housing costs continue to be the driving force on a monthly basis.
Housing, the engine of inflation
Rent was up 0.6% in April versus March and it shouldn’t get cold until the number of available homes increases significantly, or until the chill in the rest of the housing market finally catches up with rents. Economists don’t expect that to happen anytime soon.
The prices of used cars and trucksincreased by 4.4%. in April, after falling 0.9 percent in March.
Used cars had been a major driver of inflation at the beginning of the pandemic, but then they decreased.
More recently, the wholesale costs of used cars have risen again, and analysts and regulators have waited for these rising costs to be reflected in consumer prices. Now they are starting to see it.
Source: Clarin
Mary Ortiz is a seasoned journalist with a passion for world events. As a writer for News Rebeat, she brings a fresh perspective to the latest global happenings and provides in-depth coverage that offers a deeper understanding of the world around us.