Inflation slowed in the United States in December, to 5.0% year on year from 5.5% the previous month, according to the PCE index published on Friday by the Commerce Department, which is the one favored by the bank. US central (Fed).
In just one month, however, price increases remained stable at 0.1%, disappointing analysts who had expected zero inflation.
And so-called underlying inflation, which excludes food and energy prices, rose again over one month, for the first time since August, to 0.3% against 0.2%. This rebound was, however, expected by analysts.
Over one year, however, this underlying inflation also slowed, to 4.4%, as expected, against 4.7%.
Moreover, household income rose by 0.2%, a little less quickly than in November, and household expenditure fell by 0.2%.
PCE inflation is the one favored by the US central bank, and it wants to bring it down to around 2%.
To achieve this, it has been raising its key rate since March, which is pushing commercial banks to offer their customers loans at higher rates, in order to slow down consumption and ultimatelyto ease the pressure on prices.
Rates are now in a range of 4.25 to 4.50%. The next Fed meeting is scheduled for Tuesday, January 31 and Wednesday, January 1.er February, and a further rise is expected.
These rate increases, combined with inflation, greatly reduce the purchasing power of Americans.
Consumption nonetheless held up, supporting the U.S. economy in 2022. Gross domestic product growth was 2.1% for the year, Commerce Department data showed Thursday.
Another measure of inflation, the CPI index, which refers to and on which pensions are indexed, in particular, had shown that the rise in prices over one year slowed sharply in December, to 6.5% against 7, 1% the previous month.