Saturday, February 24, 2024

Consumer price data for December in the US was revised downward

U.S. consumer prices posted a smaller monthly increase than first estimated in December, revised government data showed on Friday.

The consumer price index rose 0.2% in December, instead of the 0.3% reported last month, according to the annual change in CPI data released by the Department of Labor’s Bureau of Labor Statistics (BLS). . But the November data was revised upwards to show a CPI rise of 0.2%, instead of the 0.1% previously estimated.

The changes are due to the recalculation of seasonal adjustment factors, the model used by the Government to eliminate seasonal fluctuations from the data. This standard procedure, performed by the BLS each year, covers data from January 2019 to December 2023. Year-to-year data, which is not adjusted for time, is not analyzed.

Excluding volatile food and energy components, the CPI rose an unchanged 0.3% in December.

After last year’s revisions showed inflation to be lower in the second half of 2022 than previously reported, revised CPI data for 2023 is eagerly anticipated by Federal Reserve officials. price increase.

CPI inflation readings for the fourth quarter will have an impact on the personal expenditure (PCE) price index, the inflation measures tracked by the US central bank for the 2% inflation target. .

Core CPI rose 3.9% year-on-year in December. This outperformed the underlying PCE price index, which rose 0.2% on the month and 2.9% year-on-year in December.

Financial markets expect the Fed to begin cutting credit costs in the first half of the year. As of March 2022, the central bank has raised the official interest rate by 525 basis points to the current range of 5.25% to 5.50%.

World Nation News Desk
World Nation News Desk
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