US Inflation Data: There is bad news for the United States Economy. He may again get hit with an expensive loan. In April 2023, once again there has been a jump in the inflation rate in America. According to the data that has been released on Friday, there has been an increase in the expenditure of the people in America, then there has been an increase in the prices of goods.
The Ministry of Commerce has released this data on Friday. According to which the Personal Consumption Expenditure Price Index, which is preferred by the US Central Bank Federal Reserve to measure inflation, has seen a jump of 0.4 percent more than expected in April. And it has increased to 4.4 percent, which used to be 4.2 percent last month.
This is the first time since January 2023 that there has been an increase in inflation. It is believed that due to the increase in the prices of services, food and goods, the inflation rate has increased. Excluding the inflation of food and energy, the inflation has reached 4.7 percent in the last month.
After the jump in the inflation rate, traders are speculating to increase the interest rates again by the Fed Reserve. In June, the Fed Reserve will review interest rates, then an increase in interest rates can be announced. However, the Fed Reserve is divided on raising interest rates. Some people believe that interest rates should be increased to control inflation, while some believe that the economy and the banking system have to bear the brunt of expensive loans.
In the month of May, the Fed had increased the policy rate to combat inflation. The Fed Reserve increased the rate by 25 basis points and with this increase, the interest rate increased to 5.25 percent. With this increase, the interest rate in the US went to a 16-year high.
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