(Washington) Consumer prices continued to climb in March, rising 6.4% over one year and 0.6% over one month, according to the PCE inflation index published Thursday, which is the one favored by the US central bank (Fed).
Posted at 9:30 a.m.
If we remove food and energy prices, so-called core inflation also accelerated over one year, to 5.4%, but slowed down a little over one month, to 0.4%. % against 0.5% in February, in line with analysts’ expectations.
There are two indices in the United States that measure inflation, the PCE index and the CPI index. The latter, published by the Department of Commerce, rose in February by 7.9% over one year.
The CPI index is the one used to change the amount of pensions or for the rates of certain contracts, for example. The two measures are calculated from different baskets of goods and services, which explains the difference between the two measures.
In addition, household spending increased in March at a much slower pace than in February (+0.2% vs. +2.7%), with an increase in spending on services and a drop in purchases of goods .
“Within services, spending on food and hospitality services contributed the most to the increase. Within goods, spending on motor vehicles and parts was the main contributor to the decline,” the Commerce Department said in its statement.
As for the incomes of American households, which had remained almost stable in February, they resumed their rise (+0.5%), driven by wages, while social assistance fell.
Wages have been rising sharply for several months in the United States, as a labor shortage is pushing employers to offer better conditions, including financial ones, to attract applicants.