Washington (Reuters) – American consumer prices have increased less than expected in February, but the improvement is probably temporary in the context of aggressive import prices that should increase the costs of most goods in the coming months.
The consumer price index increased by 0.2% last month after accelerating 0.5% in January, the Labor Department’s Labor Statistics Office announced on Wednesday.
During the 12 months to February, the IPC increased by 2.8% after climbing 3.0% in January. The economists interviewed by Reuters had planned that the IPC earn 0.3% and advanced 2.9% in annual shift.
The first complete inflation report of the administration of President Donald Trump still left prices at levels which, according to economists, are incompatible with the target of 2% of the federal reserve. Trump at the beginning of the month launched a trade war, increasing the prices on China goods to 20% and imposing a new law of 25% on Canadian and Mexican imports, before recovering and providing a month’s exemption for all goods that respect the rules of origin under the American-Mexican-Canadian agreement on trade.
Improved steel and aluminum prices have entered into force this week, resulting in rapid Europe reprisals.
Consumers, fearing higher prices, probably rushed to buy goods such as motor vehicles and other large tickets, which could appear in February and if not, then in the coming months.
Consumer inflation anticipations experienced an increase in February.
“The more inflation exceeds the target of the Fed, even if it is due to temporary forces such as prices, the higher expectations for expectations,” said Stephen Juneau, American economist at Bank of America Securities. “If that happened, the restoration of price stability would be much more difficult for the Fed.”
Excluding volatile food and energy components, the IPC climbed 0.2% in February after winning 0.4% in January. In the
From 12 months to February, the so-called basic CPI increased by 3.1% after the 3.3% increase in January.
After the price cascade, economists have improved their inflation forecasts.
Goldman Sachs estimates that the price index for basic personal consumer expenses, one of the measures followed by the Fed for Monetary Policy, will be from 2.65% in January to around 3% by December. He had planned the basic annual inflation of the PCE remaining in the area of 2% for the rest of the year.
The American central bank is expected to maintain its benchmark interest rate during the unchanged night in the range of 4.25% to 4.50% next Wednesday. The financial markets expect the Fed to take up the reduction rates in June due to the deterioration of economic perspectives, after stopping in January.
