May 22, 2024

Inflation in the United States increased by only 5.0%

High inflation rates in the US have eased more than expected. The Washington Department of Labor announced Wednesday that consumer prices rose 5.0 percent in March from the same month a year ago.

It is the lowest increase since May 2021. Analysts had expected the inflation rate to drop to 5.1 percent on average. In February, the rate was still 6.0 percent. On a monthly basis, consumer prices rose 0.1 percent in March. It was expected here 0.2 percent.

On the other hand, core inflation rose to 5.6 percent as expected. In February it was still 5.5 per cent. Core inflation dampens volatile energy and food prices.

The focus is on inflation data because it is of great importance to the monetary policy of the US Federal Reserve. Recently, the financial markets were expecting a major interest rate increase of 0.25 percentage points in May. But the unchanged interest rate is also not excluded. It remains uncertain how much the recent banking turmoil will affect lending and inflation. (dpa)

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