Adriana Kugler, a member of the U.S. Federal Reserve, confirmed that the pace of progress toward achieving the target inflation rate has slowed since last summer, noting that recent economic data reflects ongoing inflationary pressures in the markets.
According to estimates, the personal consumption expenditures (PCE) index recorded a rate of 2.5% over the past 12 months in February, based on the consumer price index and the producer price index. Kugler explained that the return of positive inflation in commodity prices has not been "meaningful," as it contributed to limiting the decline in overall inflation and increased uncertainty regarding the future path of prices.
Surveys have shown that consumers expect further price increases in the near future, coinciding with growing concerns about the implications of trade policy. Kugler emphasized that the U.S. Federal Reserve is closely monitoring any acceleration in inflation rates amid signs of an economic slowdown at the beginning of the year.
Nevertheless, the labor market still shows signs of stability, with the unemployment rate remaining low through February, reflecting sustained strong demand for labor. As anticipation grows for upcoming monetary policy decisions, challenges related to inflation and interest rates remain a key focus for markets and investors.
