January 13, 2023
1 min read

US inflation falls to lowest in over a year

As a measure of inflation, the consumer price index (CPI) increase last month was lower than the 7.1 per cent reported in November…reports Arul Louis

The US annual inflation rate dropped in December to an annualised rate of 6.5 per cent, the lowest increase since October 2021, the Labour Statistics agency reported on Thursday.

As a measure of inflation, the consumer price index (CPI) increase last month was lower than the 7.1 per cent reported in November.

The Bureau of Labour Statistics said the drop was aided by the cooling of petrol prices which led to a decrease of the energy index by 4.5 per cent even as other components of the index rose.

It said: “The index for gasoline was by far the largest contributor to the monthly all items decrease”.

However, the food index increased by 0.3 per cent over the month.

The US inflation rates are keenly watched by policymakers and the financial sectors around the world as they influence the US interest rates that can have a cascading effect on economies elsewhere.

While the slowing of inflation, which has been a factor in the Federal Reserve raising the interest rate to temper inflation, may be seen as a positive sign for the economy the overall picture is mixed.

Excluding food and energy, index for all other items rose 5.7 per cent over the last 12 months and this is the focus of the Federal Reserve in determining the course of interest rates adding a note of caution.

Greg McBride, chief financial analyst at Bankrate told CNBC that it was too early to determine if the inflation was under control.

“We’ve got to see sustained improvement over a period of months, and across an expanding range of goods and services,” he told the outlet.

While the economy is at risk of a recession from the hikes in interest rates, more of them may be on the way, if at a slower pace.

Philadelphia Federal Reserve Bank President Patrick Harper said on Thursday that more hikes in the 0.25 per cent range were likely, but ruled out higher rises.

ALSO READ: US welcomes India’s participation in IPEF

Previous Story

‘Congress should probe Biden’s handling of sensitive materials’

Next Story

Lula says insiders enabled Brasilia riots

Latest from -Top News

Singapore’s Ruling Party Achieves Landslide Victory

Prime Minister Lawrence Wong, whose party won the election, thanked supporters.,..reports Asian Lite News Singapore’s ruling People’s Action Party (PAP) won 87 of the 97 seats in Parliament in Saturday’s general election,

Jaishankar, Lavrov Discuss Pahalgam Terror Attack

Both the Ministers discussed issues of Russian-Indian cooperation and the aggravation of India-Pakistan relations following the terrorist attack in Pahalgam. External Affairs Minister (EAM) S. Jaishankar spoke to the Russian Foreign Minister

Ukrainian forces to join VE  procession  

Ukrainian personnel will join around 1,000 UK armed forces members, including soldiers on horseback and military bands, to symbolise “the global support for their continued fight for freedom” against Russia  krainian armed

Rajnath Singh to skip Russia visit

The decision comes amid rising tensions between India and Pakistan following the recent terror attack in Pahalgam, Jammu and Kashmir…reports Asian Lite News Defence Minister Rajnath Singh will not likely attend Russia’s

WAVES 2025: Jaishankar Advocates Cultural Pluralism

External Affairs Minister S. Jaishankar delivered a powerful address at the WAVES 2025 Global Media Dialogue, highlighting the significance of cultural pluralism in shaping global change. Speaking on the second day of
Go toTop

Don't Miss

Republican gains in elections shock Biden

With Trump out of office and President Joe Biden’s job

‘Doing a lot for India’ :Biden

“We’re helping India significantly, Biden added…reports Arul Louis President Joe