The US inflation rate has increased in eight months in December in December, suggesting that the federal preparation system is probably not in a hurry to resume reducing interest rates.
Other data on Friday indicated that labor costs rose in the fourth quarter due to rising wages.
In the fourth quarter, price pressure rose, and the progress of inflation has stalled.
The Central Bank has not been changed for the first time on Wednesday since the policy easing cycle started in September.
The policy statement accompanied by the decision did not include the “progress” inflation for 2 % of the Fed.
“The Fed prognosis is because the economy is progressing smoothly, and the price is slowly returning to the target in a great uncertainty environment, so the pace of monetary easing is slow.” I support you.
The price index for personal consumption expenditures (PCE) increased by 0.3 % last month, and after 0.1 % in November, the Ministry of Commerce has stated that it has been the largest increase since last April.
The increase was in line with the expectations of the economist.
From December to December, the PCE price index rose 2.6 %. It was the biggest profit in seven months, increasing 2.4 % in November.
This data was included in the fourth quarter -in -develop domestic production report released on Thursday.
The Fed tracks PCE price measures for monetary policy.
Since September, it has been reduced by 100 basis points to 4.25 % to 4.50 % of the night interest rates on benchmarks.
The Central Bank has predicted only two interest rates this year, which decreased from the four predicted four in September this year.
This reflects the incorporation of President Trump's tax cuts, a wide range of tariffs on imports, and uncertainty about the crackdown of immigrants that economists are seeing inflation.
Price reduction is not expected by June. Except for volatile foods and energy components, it increased by 0.2 % last month due to an increase in November to increase by 0.1 %.
\ From December to December, the so -called core inflation rose 2.8 %, consistent with the increase in November.
Robust consumer expenditure
Concerns about tariffs helped consumers in a hurry to avoid higher prices and supply power to consumer spending. Consumer spending gained the fastest growth pace in nearly two years in the fourth quarter, and maintained the economy.
Consumer spending, which accounts for more than two -thirds of US economic activities, increased by 0.7 % in December after revising 0.6 % in November. It was previously reported that the expenditure increased by 0.4 % in November.
The increase in expenditures last month occurred with the entire product and services. Economist expects the pre -purchase in January to continue in January. The economy grew 2.3 % a year in the fourth quarter. The rapid increase in consumer spending is that the rapid increase from the inventory has almost exhausted, and the strike at Boeing Ba.n in the fall focused on equipment.
With the powerful consumer spending last month, the economy will be led to a higher growth trajectory toward the first quarter.
Another report from the Labor Bureau Labor Statistics Bureau raised 0.8 % in the fourth quarter, and in the fourth quarter, the employment cost index (ECI), which is 0.9 %, increased by 0.9 %. Showed me.
Economists predicted that the ECI would rise by 0.9 %. After 3.9 % from September to September, labor costs increased by 3.8 % in 12 months from December to December.
The ECI is considered to be one of the better scales of the labor market slack by policy proprietors, and is considered a core inflation prediction factor to adjust the changes in composition and work quality.
The wages and salaries, which account for most labor costs, increased 0.9 % of the previous quarter after 0.8 % in the quarter of July to September. They increased 3.8 % a year and slowed down from 3.9 % in the third quarter.
Adjustment of inflation increased by 1.4 % in the quarter of July to September, and the overall wage from 12 months to December increased by 0.9 %. The increase in real income supports expenditures.
The wages and salaries of the private sector have increased by 0.9 %.
After 3.8 % in the third quarter, it increased 3.7 % in 12 months from December to December.
The wages of the state and local governments matched the quarterly of July to September, earning 1.0 % of the previous quarter. They rose 4.5 % in 12 months until December.
The interests of all workers have risen 0.8 %, consistent with the third quarter. After rising 3.7 % from July to September, it increased 3.6 % in 12 months from December to December.
