Washington: The US inflation Official data showed on Friday that the most closely watched measures by the Federal Reserve in April reversed a recent slump and raised the prospect of another interest rate hike in June.
Fed Chair Jerome Powell has said the US central bank is taking a “data-dependent approach” to its next decision on where it will consider if another rate hike is needed to bring inflation back to its long-term target of two per cent.
The personal consumption expenditure (PCE) index rose 4.4 percent year-on-year in April, up from 4.2 percent a month earlier, the Commerce Department said in a statement.
This was the first increase in the annual figure since January, and came as a result of a sharp annual increase in the prices of services, food and goods.
The Department of Commerce said that the price increase on a monthly basis has also accelerated.
Inflation excluding volatile food and energy prices also rose to 4.7 percent last month.
Analysts are closely watching speeches by members of the Fed’s rate-setting committee to see how they are interpreting the most recent economic data.
Some members of the Federal Open Market Committee (FOMC), including Powell, have suggested that rates may rise significantly to bring down inflation, while others, such as Dallas Fed President Laurie Logan, have called for another rate hike at the next meeting. have indicated their preference for In June.
Futures traders now view another interest rate hike from the Fed on June 14 as the most likely scenario, according to data from CME Group.
Fed Chair Jerome Powell has said the US central bank is taking a “data-dependent approach” to its next decision on where it will consider if another rate hike is needed to bring inflation back to its long-term target of two per cent.
The personal consumption expenditure (PCE) index rose 4.4 percent year-on-year in April, up from 4.2 percent a month earlier, the Commerce Department said in a statement.
This was the first increase in the annual figure since January, and came as a result of a sharp annual increase in the prices of services, food and goods.
The Department of Commerce said that the price increase on a monthly basis has also accelerated.
Inflation excluding volatile food and energy prices also rose to 4.7 percent last month.
Analysts are closely watching speeches by members of the Fed’s rate-setting committee to see how they are interpreting the most recent economic data.
Some members of the Federal Open Market Committee (FOMC), including Powell, have suggested that rates may rise significantly to bring down inflation, while others, such as Dallas Fed President Laurie Logan, have called for another rate hike at the next meeting. have indicated their preference for In June.
Futures traders now view another interest rate hike from the Fed on June 14 as the most likely scenario, according to data from CME Group.