lundi 30 mars 2015
U.S. Inflation Undershoots the Fed’s 2% Target for the 34th Straight Month
Posted on 10:22 by nice news
The Federal Reserve’s preferred measure of inflation in February fell short of the central bank’s 2% target for the 34th straight month.
The price index for personal consumption expenditures was up only 0.3% from a year earlier, the Commerce Department said in Monday. The last reading above 1% came in November.
The oil price crash, a strong dollar and weak overseas economies have all kept inflation at bay. But some slack in the U.S. economy may also be keeping prices muted.
Taking out food and energy, inflation barely firmed to 1.4% from 1.3% in January.
The Fed has two mandates: fostering maximum employment and price stability. The two aren’t at odds, at least for the moment, but we’re getting closer.
In projections released earlier this month, Fed policy makers lowered their estimate of the longer-run jobless rate to a range between 5% and 5.2%. That threshold represents what some economists call the nonaccelerating inflation rate of unemployment, or Nairu. In English, it’s the lowest unemployment rate that won’t stoke inflation.
At 5.5% in February, unemployment is still shy of that mark. But overall, the labor market has been adding job
The price index for personal consumption expenditures was up only 0.3% from a year earlier, the Commerce Department said in Monday. The last reading above 1% came in November.
The oil price crash, a strong dollar and weak overseas economies have all kept inflation at bay. But some slack in the U.S. economy may also be keeping prices muted.
Taking out food and energy, inflation barely firmed to 1.4% from 1.3% in January.
The Fed has two mandates: fostering maximum employment and price stability. The two aren’t at odds, at least for the moment, but we’re getting closer.
In projections released earlier this month, Fed policy makers lowered their estimate of the longer-run jobless rate to a range between 5% and 5.2%. That threshold represents what some economists call the nonaccelerating inflation rate of unemployment, or Nairu. In English, it’s the lowest unemployment rate that won’t stoke inflation.
At 5.5% in February, unemployment is still shy of that mark. But overall, the labor market has been adding job
U.S. Inflation Undershoots the Fed’s 2% Target for the 34th Straight Month
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