US Inflation Data: There is bad news for the US 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 Expenditures Price Index, which the Federal Reserve of America prefers to measure inflation, has seen a jump of 0.4 percent more than expected in the month of April. 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 about increasing 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 May, the Fed increased the policy rate to combat inflation. The Fed Reserve increased by 25 basis points and with this increase, the interest rate increased to 5.25 percent. With this increase, the interest rate in America went to a 16-year high.
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