- Home
- US...
US Fed's inflation measure cools slightly
WASHINGTON, D.C. —The US Federal Reserve's (Fed) favored measure of inflation eased slightly in May, according to government data published on Friday, as goods prices cooled.
The data provide the US central bank with further evidence that its fight against inflation is back on track after a small uptick in the annual inflation rate in the first quarter of the year.
The personal consumption expenditures price index rose at an annual rate of 2.6 percent in May, the Commerce Department said in a statement, while monthly inflation remained unchanged.
This was in line with the median forecast of economists surveyed by Dow Jones Newswires and The Wall Street Journal.
"It is just additional news that monetary policy is working, inflation is gradually cooling," San Francisco Fed President Mary Daly told CNBC on Friday after the data were published.
"That's a relief for businesses and households who have been struggling with persistently high inflation," added Daly, who has a vote on the Fed's interest rate-setting committee this year.
On an annual basis, goods prices decreased by 0.1 percent, while those of services rose by 3.9 percent.
The data certainly add to the case for the Fed to consider cutting interest rates, which currently sit at a 23-year high.
But they are unlikely to cause policymakers to immediately take action, given that inflation remains stuck above the bank's long-term target of 2 percent.
Stripping out volatile food and energy prices, the closely watched "core" measure of inflation eased to an annual rate of 2.6 percent in May, in line with expectations — a sign that underlying prices cooled further.
The data published Friday also show that personal income rose by 0.5 percent from a month earlier, the Commerce Department said, up slightly from 0.3 percent in April.
Personal savings as a percentage of disposable income came in at 3.9 percent in May, up slightly from a revised figure of 3.7 percent a month earlier.
"The inflation backdrop is changing favorably," High Frequency Economics chief US economist Rubeela Farooqi wrote in a note to clients on Friday.
"Coupled with a more subdued path for household spending and growth supports, a shift in monetary policy toward a less restrictive stance, possibly as early as September," she added.
Futures traders currently assign a probability of just under 70 percent that the Fed will have cut interest rates by mid-September, according to data from CME Group.
This is up sharply from a month ago, when the chances of a September cut hovered around 50 percent, indicating that markets saw the first cut coming as late as the last quarter of this year.
Earlier this month, the Fed penciled in just one rate cut this year, down from three in its previous forecast published in the spring.
- https://www.msn.com/en-ph/news/money/us-fed-s-inflation-measure-cools-slightly/ar-BB1p7IGD?ocid=00000000
Related
P35 daily wage increase in NCR ‘an insult to workers’ – groups
MANILA, Philippines — The P35 daily wage increase for private sector workers in the National Capital Region (NCR) or Metro Manila earned criticisms from various labor groups pushing for higher and decent pay. The Gabriela Party-list, Partido Lakas ng Masa, and Trade Union Congress of the Philippines (TUCP) considered the Regional Tripartite Wages and Productivity Board (RTWPB)-approved P35 wage hike as insufficient as it is an insult to...
NewsCharging At Electrify America Is Improving
EA is pouring money into making its fast chargers more reliable, and it’s working.
NewsNBA: Heat bring back Dru Smith, who tore ACL last season, on 2-way deal
MIAMI — Dru Smith is back with the Miami Heat, with the injured guard agreeing Monday to a two-way contract in a sign that he’s on his way back to the court. Smith was hurt and saw his 2023-24 NBA season end when the Heat visited Cleveland back in November, tearing his right ACL when he slipped off a raised portion of the floor in front of the Cavaliers’ bench. He had been part of Miami’s rotation to that point, appearing in nine of the team’s...
NewsGolden State Warriors legend Klay Thompson 'joining the Dallas Mavericks on three-year, $50M deal'
lay Thompson is reportedly set to join the Dallas Mavericks on a three-year, $50million deal after a glittering run with the Golden State Warriors.
NewsINQToday: Wage hike of P35 for Metro Manila private sector workers approved – DOLE
Here’s a quick roundup of today’s top stories: China ship on ‘resupply cruise’ passed near 5 West PH Sea features – monitor A China Coast Guard (CCG) ship conducting a “resupply cruise” to its outposts in the Spratly Islands also passed near five features of the West Philippine Sea. West Philippine Sea monitor Ray Powell said that the 8,000-ton Sansha 2 Hao first passed off Pag-asa (Thitu) Island on Sunday morning. It was accompanied by the San...
NewsPH, four Asian countries to link payments systems
FIVE central banks in Asia, including the Bangko Sentral ng Pilipinas (BSP), are preparing for the implementation of a cross-border retail payments platform under a Bank of International Settlement's (BIS) initiative. The BIS, dubbed the central bankers' central bank, said its Project Nexus aimed to link the instant payment systems (IPS) of the Philippines, India, Malaysia, Singapore and Thailand. The BSP, Reserve Bank of India (RBI), Monetary...
NewsDel Monte expects to bite the bullet through 2025
Canned food giant Del Monte Pacific Ltd. reported a $127-million net loss during its fiscal year 2024 ending in April on higher costs in its US subsidiary, with the company expecting to remain unprofitable in the next fiscal year. In a stock exchange filing on Monday, Del Monte said it had incurred $13.3 million in one-off expenses, mostly for severance pay and higher professional fees at California-based Del Monte Foods Inc. (DMFI). Del Monte...
NewsNSC: Released 85-year-old PDL not a political prisoner
The National Security Council (NSC) on Tuesday said the 85-year-old Gerardo dela Peña, who was released from the New Bilibid Prison over the weekend, was not a political prisoner. According to the NSC, Dela Peña was not convicted because of his political beliefs, nor was he detained in a discriminatory manner. “We wish Mr. Dela Peña well but we also want to set the record straight,” said the NSC. GMA News Online sought comment from the political...
News