JAKARTA (TheInsiderStories) – United States’ (US) consumer prices index (CPI) lowered to 1.5 percent year-on-year (YoY) in February from January at 1.6 percent, due to fall in cost of gasoline and clothing while prices of electricity stalled. Based on the official data its the lowest rate since September of 2016.
On a monthly basis, the CPI went up 0.2 percent after a flat reading in January, matching forecasts. It is the first monthly rise in the CPI, due to prices of food, gasoline and rents.
Excluding food and energy, core inflation rate edged down to 2.1 percent from 2.2 percent in January, below forecasts of 2.2 percent.
While, on month-over-month, the indexes for shelter and food increased, and the gasoline index rose after recent declines to result in the seasonally adjusted all items increase. The food index rose 0.4 percent, its largest monthly increase since May 2014, as both the food at home and food away from home indexes increased.
Furthermore, the gasoline index rose 1.5 percent in February, following three consecutive monthly declines, resulting in the energy index rising 0.4 percent despite declines in the electricity and natural gas indexes.
Overall, the index for all items less food and energy increased 0.1 percent in February after rising 0.2 percent in January, matching market expectations. Along with the shelter index, the indexes or personal care, apparel, and education all increased. The indexes for recreation, medical care, used cars and trucks, and new vehicles all declined in February.
A day earlier (03/11), White House reported will issue the 2020 US’ Presidential Budget. The budget states that the government will give priority to Donald Trump’s Administration funding, which includes overcoming wasteful Washington spending, strengthening the southern border, promoting a healthy American economy, and maintaining strong national defenses.
The pro-growth policy of the Trump Administration has given up the American economy, created millions of jobs and produced historically low unemployment.
But, the current national debt of more than US$22 trillion remains a major threat to the prosperity of the US economy and society. Therefore, the budget is prioritized to overcome the national debt crisis while still investing.
It was explained that the budget reduced non-defense program spending by 5 percent below the 2019 stamp level. In addition, reducing spending by $2.7 trillion over 10 years, shrinking the deficit of almost 5 percent of GDP in 2020 to below 1 percent of GDP by 2029.
The description of the budget are as follows: $32.5 billion for border security and immigration enforcement activities to help manage the immigration crisis on the southern border of the US, including: $8.6 billion for border walls, $478 million to recruit 1.750 additional Customs and Border Protection (CBP) and Immigration and Customs law enforcement officers, and $2.7 billion to fund 54.000 ICE immigration beds.
In addition, there are $750 billion for national defense, including $718 billion for Department of Defense to pursue the National Defense Strategy.
Then, there is $80.2 billion to fund the medical care requirements of the Department of Veterans Affairs (VA) in 2020.
And the last, worth of $330 million for the Department of Justice to help state and local efforts to combat the opioid crisis. Overall, the 2020 government spending budget around $1.192 billion.
Written by Daniel Deha, Email: email@example.com