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According to the Fed’s preferred indicator, US inflation remains stable


These figures come two weeks after the publication of another indicator of inflationthe CPI index, reference in particular for the indexing of pensions. September data, published in mid-October, had shown a very timid slowdown in a year (8.2% compared to 8.3% in the previous month), and even a new acceleration in one month, to 0.4%.

The US consumer spending rose more than expected in Septemberwhile the underlying inflationary pressures continuedwhich keeps the Federal Reserve on the way to raise rates of interest in 75 basis points for the fourth time this year.

The consumer spendingwhich represents more than two-thirds of US economic activity, increased 0.6% last monththe Commerce Department reported Friday. Data for August was revised up to show an increase of 0.6% instead of the 0.4% previously reported.

The data was included in the report. advance of the Gross Domestic Product of the third quarter of Thursdaywhich showed a rebound in economic growth after contracting in the first half of the year.

the rhythm of 2.6% growth annualized last quarter was largely due to a strong trade deficit reduction.

Consumer spending growth slowed to a 1.4% rate from the 2% pace in April-June. The domestic demand in the last quarter was the lowest in the last two years.

The Fed has increased its interest rate reference to the range of 3% al 3,25%, the faster pace policy tightening in a generation or more.

The demand cooling has led some economists to anticipate that the US central bank could signal slower uploads of rates at its monetary policy meeting next tuesday and wednesdaythough much will depend on inflation, which remains stubbornly high.

The Fed follows the PCE price indices to reach its 2% inflation target. Other measures of inflation are much higher. The Consumer Price Index increased by 8.2% year-on-year in September

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