Washington Price pressure in the USA weakened again in December. Consumer prices rose by 6.5 percent compared to the same period last year. The Ministry of Labor announced on Thursday.
Experts in the USA had expected this value. Prices rose by 7.1 percent in November and by 9.1 percent in June.
The new price data strengthens hopes that the US Federal Reserve will slow the rate hikes in the new year. The monetary authorities have raised the key interest rate in several steps over the past few months to a range of 4.25 to 4.50 percent. In December, the Fed chose an adjustment of 50 basis points after four hikes of 0.75 percentage points each.
As inflation weakens, it has recently signaled that the pace of monetary tightening will be slowed. The Fed’s inflation target is two percent, and the next interest rate decision is on February 1st.
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The central bankers around their President Jerome Powell are facing the major challenge of having to counter the still very high inflation in the country with an aggressive interest rate policy without putting too much strain on the economy. However, various economic indicators, such as those from the US labor market, are currently still robust.
More to come.