The annual rate of inflation in the United States continued to decline in Februaryfor the eighth consecutive month, and stood at 6%, four tenths below that of January, according to data offered this Tuesday by the Bureau of Labor Statistics (BLS, in English).
However, in monthly terms consumer prices rose four tenthsat a time when the Federal Reserve (Fed) faces great scrutiny for its measures to curb inflation, and more now after the debacle of the SVB bank and the fears of a banking crisis.
Core inflation, which measures the rise in consumer prices minus food and energy, the most volatile, it fell one tenth and placed its interannual rate in February at 5.5%the lowest figure since December 2021, notes the BLS.
On a monthly basis, however, the core was up half a point, after posting a 0.4 point increase in January.
It might interest you: Inflation or more bankruptcies: Banking crisis in the US puts the Fed in a dilemma
Higher home-related prices were by far the largest contributor to February’s price rise, accounting for 70% of the index increase, the BLS explained. It rose eight tenths to a year-on-year rate of 8.1%
The price of food, on the other hand, grew four tenths and has risen 9.5% in the last year, while that of energy rose six tenths to settle at 5.2% year-on-year.
Best month in a year and a half, but waiting for the banking crisis
As the body recalls, the inflation rate of 6% is the lowest since September 2021.
The inflation data is released at a key moment, in which it is closely analyzed whether the constant interest rate hikes carried out by the Fed are having the desired effect of containing prices and to what extent they are affecting economic evolution.
In addition it is now also being questioned whether tight monetary policy is contributing to recent fears of a banking crisis.
In fact, following the collapse last week of the Silicon Valley Bankwhich had to be intervened by the authorities after its shares plummeted, several analysts expect the Fed will be forced to further reduce, or even pause, its rate hikes.
The last one occurred on February 1, which was the eighth since March of last year, a rise of 0.25 points, which confirmed a slowdown in the increases.
With this rise, less than previous rises, the rates were located in a range of 4.5% and 4.75%the highest figure since September 2007.
The last:
EFE International news agency based in Madrid and present in more than 110 countries.