INFLATION IN THE US RETREATS SLIGHTLY AFTER HITTING FIVE-YEAR HIGH

Washington, – Consumer Price Index in the U.S. for the month of April retreated to 1.8 percent down from the five-year high reached in February, official data showed Monday.

In March, the PCE index fell 0.2 percent to mark the first decline in more than a year, the government reported Monday. A core index that strips out the volatile food and energy categories also dropped 0.1 percent, reflecting the largest decline since 2001. As a result, the 12-month rate of PCE inflation subsided to 1.8 percent in March from 2.1 percent in the prior month. The PCE, the Fed’s preferred inflation, topped 2 percent in February for the first time since 2012.

Consumer spending, meanwhile, was flat in March and the government also revised outlays in February to show no gain. The two-month stretch in spending was the weakest since the end of 2014 and start of 2015, contributing to a poor 0.7 percent growth rate in gross domestic product in the first quarter. Consumers outlays rose just 0.3 percent in the first three months of the year, a steep drop from the 3.5 percent gain at the end of 2016. (QNA)

Source: Qatar News Agency