Inflation slowed sharply in November in the United States, falling to 5.5% annually from 6.1% in October, according to the PCE index released Friday by the Commerce Department. The slowdown in price increases is in line with analysts’ expectations. And in one month, the increase is only 0.1%, when it was 0.4% in October.
The measures taken by the Fed to curb economic activity, and thus hope to curb high inflation, appear to be having an effect. But they also discouraged Americans from consuming too much, as the holiday season kicked off: Consumption only grew 0.1%, up from 0.9% in October, as expected. And, if they opened their wallets more to consume services, they reduced their purchases of goods.
Revenue growth slows slightly
Own revenues increased a little less than expected, by 0.4%, compared to +0.7% in the previous month. The increase in revenue is linked to the increase in wages, the Commerce Department said in its press release. The labor shortage that the country has been experiencing for a year and a half has effectively led employers to raise wages to attract and retain staff.
The PCE inflation index is the one favored by the Fed. The Fed intends to reduce its rise to around 2%. Another measure, the CPI index, to which he refers, and which was published last week, also showed a sharp slowdown in November, to 7.1% year-on-year, compared to 7.7%.
Source: BFM TV
