US inflation rate to approach 2% target by 2024

As of December 5, the CBO forecast that the personal consumption expenditures (PCE) index, the Fed's preferred inflation measure, would fall to 2.1% in 2024.

US inflation rate will approach 2% target in 2024. (Source: stock.adobe)

As of December 5, the CBO forecast the personal consumption expenditures (PCE) index, the Fed's preferred inflation measure, would fall to 2.1% in 2024. Excluding volatile energy and food prices, the core PCE index is forecast to fall to 2.4% in 2024 and reach 2.3% in 2025.

According to the CBO, price pressures are expected to ease in 2024 as consumer spending weakens after a strong 2023, while supply improves and rents decline. The US economy grew more than expected in 2023, but is forecast to slow in 2024 to 1.5% growth, before recovering to 2.2% in 2025.

CBO analysts also forecast that labor market conditions will weaken in 2024 due to slowing demand. The unemployment rate is expected to rise to 4.4% in 2024, from 3.7% in November 2023, according to the latest report. CBO also said the labor force will likely receive a boost from immigration over the next two years.

Source: https://baoquocte.vn/ty-le-lam-phat-cua-my-se-tien-sat-muc-tieu-2-vao-nam-2024-254062.html