The inflation lengthens its galloping rise in the US. The cost of living in the world’s leading economy soared to 7% in December, its highest rate since 1982. Almost four decades. However, as already happened with the November data, the economists’ forecasts are fulfilled and the federal bank is more than prepared to put the brakes on it.
The advance in the month-on-month rate this time remains at 0.5%, three tenths less than a month ago, as published this Wednesday by the US Government’s Bureau of Labor Statistics. Notwithstanding this reference, analysts did not expect an increase of more than 0.4% with respect to November, as the consensus of The Wall Street Journal.
As usual, the rate that has seen the light is placed more than three times above the 2% target that the US Federal Reserve (Fed) has. However, the institution has already shown through the mouth of its president, Jerome Powell, his willingness to withdraw stimulus tools and nimbly raise rates if necessary to put the brakes on him.
In this sense, the greater tolerance than this time has been inflation is largely explained by the introduction a year ago of the concept of “average inflation” in his mandate. A factor that allows the US central bank to tolerate “temporary” changes above the 2% threshold to achieve an average around this level in the medium term.