High inflation in the United States decreased more than expected. In March, consumer prices rose by 5.0 % compared to the same month of last year as the Ministry of Labor in Washington announced on Wednesday. This is the lowest growth since May 2021
Analysts on average expected that the inflation rate would decrease to 5.1 %. In February, this figure was 6.0 %.
“Although inflation is still too high, this progress means more opportunities for maneuvering by hardworking Americans,” US President Joe Biden reacted to new data.
He added that now it is necessary to continue to reduce costs for families. At the same time, the Democrat fell upon the Republicans in Congress, who want to reduce taxes only for rich and large corporations.
Inflation data are in the spotlight, since they are of great importance for the monetary policy of the US Federal Reserve System. More recently, financial markets expected to increase the interest rate by 0.25 percentage points in May.
However, it is possible that the interest rate will remain unchanged.
It is still unclear how much recent banking shocks will affect the trends of lending and inflation.