The Consumer Price Index for All Urban Consumers (CPI) rose 0.6% in August on a seasonal basis, after rising 0.2% in July, the Bureau of Labor Statistics (BLS) reported. In the last 12 months, until August 2023, All goods index rose 3.7% before seasonal adjustment.
Prices in the United States have risen since last year and is growing faster than any other country in the Group of Seven (G7) most developed economies, according to the Organization for Economic Co-operation and Development (OECD).
Many of the causes of inflation since last year are due to disruption of the supply chain due to the Covid-19 pandemic and rising food prices due to crops affected by severe storms and drought.
On the other hand, the United States Government is delivering stimulus checks to the population and companies to protect them from the economic crisis caused by the pandemic, which increases the demand for products.
In 2022, the increase in oil prices due to the war between Russia and Ukraine will cause a significant increase in gasoline, which has the effect of increasing the prices of products and their transportation.
The sum of all these factors led to high inflation which has not been seen in the United States for forty years and now the Federal Reserve is trying to slow it down with rising interest rates to slow the economy and discourage consumption.
Americans and their families have had a tough economic year and one of their main concerns for the near future is the issue of inflation and possible economic recession that will affect your pockets more.
The US Bureau of Labor Statistics reports that year-over-year inflation has had significant increases throughout the year:
– July (2023): 3.2%
– June: 3.0%
– May: 4.0%
– April: 4.9%
– March: 5%
– February: 6%
– January: 6.4%
– December (2022): 6.5%
– November: 7.1%
– October: 7.7%
– September: 8.2%
– August: 8.3%
