Worried about inflation are optimism12/25/2023 “This CPI report is being interpreted as really good news,” she said. “With fewer people trying to buy goods, inflation will go down.”īinder said Thursday’s report could be taken as evidence suggesting that the Fed’s approach might be working. “They want to reduce how much people are trying to spend,” Binder said. economy, Carola Binder, an associate professor of economics at Haverford College and a senior affiliate scholar at George Mason University’s Mercatus Center, told VOA. The aim is to make saving money more attractive and borrowing more expensive, thereby reducing the amount of money flowing through the U.S. It has moved aggressively at times, hiking rates by as much as 75 “basis points” - three-quarters of a percentage point - at a time. central bank, has been raising interest rates as part of its effort to bring inflation under control. inflation rate is well below the world average of 8.8% for the year ending in October, though somewhat higher than the 7.2% average for developed countries.īeginning in March the Fed, the U.S. According to the International Monetary Fund, the U.S. have mirrored inflation across many countries in the wake of the lockdowns caused by the COVID-19 pandemic. had prices rising by just 0.3% in October, significantly slower than the 0.6% measured a month before. Stripping volatile food and energy prices out of the measurement - something economists believe presents a truer picture of the overall direction of prices in the U.S. Prices for goods and services in the United States rose 7.7% during the 12-month period ending in October, the lowest annualized rate since January, leading to speculation that the efforts of the Federal Reserve to tame inflation through interest rate hikes may be bearing fruit.Īccording to data released by the Bureau of Labor Statistics, the Consumer Price Index (CPI) for all urban consumers rose by 0.4% month over month, which was enough to lower the annualized rate significantly from last month’s 8.2% figure.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |