WASHINGTON, United States (Reuters) – U.S. consumer spending was flat in March, while underlying inflation pressures remained strong, which could lead the Federal Reserve to raise its limits again. interest rate next month.
The new data, released by the US Commerce Department, follows a 0.1% rise in February, a figure revised down in the new release.
They were included in the preliminary U.S. first-quarter GDP report, released Thursday, which shows consumer spending grew at an annualized rate of 3.7% over the period, after growing at a pace of 1.0% in the previous quarter.
The economy as a whole grew at a pace of 1.1%, compared to 2.6% in Q4 2022, as the acceleration in consumer spending was offset by the liquidation of inventories by companies in anticipation of a decline. demand later in the year.
Sluggish consumer spending last month likely reflects Americans’ growing aversion to high prices, as well as the expiration of a temporary increase in Supplemental Nutrition Assistance Program (SNAP) benefits put in place to protect people and low-income families during the pandemic.
Although inflation remains high, it is gradually slowing down. The personal consumption expenditure (PCE) price index increased by 0.1% in March against 0.3% in February.
Excluding the volatile components of food and energy, the PCE price index rose 0.3% after rising 0.3% in February. The so-called “core” PCE price index rose 4.6% year-on-year in March, after rising 4.7% in February. The Fed is tracking PCE price indices to hit its 2% inflation target.
(Report Lucia Mutikani; Victor Goury-Laffont)
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