Monday, October 3, 2022

US consumer prices rose 9.1% in June

US consumer prices are still rising, up 9.1% in June compared to a year ago, the government reported Wednesday, the fastest rise in four decades.

The Bureau of Labor Statistics said prices rose 1.3% in June compared to May. That figure is also considered a huge jump, after increases in previous months that are squeezing the household budgets of millions of American families, including food, gasoline and housing.

The biggest increase from May to June was the 7.5% increase in the energy index, which contributed nearly half of the overall rise in inflation. The energy index, which includes fuel, oil, gasoline and electricity prices, rose 41.6% for the year, the biggest 12-month increase since April 1980.

The cost of gasoline rose 11.2% in June, partly reflecting the turmoil in world oil prices caused by the Russian invasion of Ukraine, now in its fifth month. Prices at service station pumps, however, have been falling since the period of the last inflation report.

Pork products are displayed at a market in Pittsburgh, on July 12, 2022.

Pork products are displayed at a market in Pittsburgh, on July 12, 2022.

“While today’s headline inflation reading is unacceptably high, it is also out of date,” US President Joe Biden said in a statement. “Today’s data does not reflect the full impact of nearly 30 days of declines in gasoline prices, which have reduced the price at the pump by about 40 cents since mid-June.

Inflation is our most pressing economic challenge,” he said. “It is affecting almost every country in the world. It is little consolation for Americans to know that inflation is also high in Europe, and higher in many countries than in the United States. But it is a reminder that all major economies are struggling with this COVID-related challenge, which is made worse with [Russian President Vladimir] Putin’s disproportionate aggression” in his invasion of Ukraine.

Aside from the cost of gasoline, most American families are most concerned about rising food costs, up 1% in June from May and 10.4% from a year ago, which is the largest annual increase since February 1981. Apartment rents were eight-tenths. one percentage point more in June compared to the previous month.

Officials at the Federal Reserve and the White House have expressed ongoing concern about rapidly rising consumer prices. Polls show it is the biggest economic concern for American voters four months before the national midterm elections, even as American employers continue to add hundreds of thousands of new jobs to the economy each month.

Approval ratings for Democratic President Biden’s performance in office have plummeted, largely due to inflation concerns, leading to widespread predictions that Republicans will gain control of the House and possibly the Senate. .

Policymakers at the Fed, the country’s central bank, have embarked on steep hikes to its benchmark interest rate on the theory that the move will curb inflation by raising interest rates for consumers on mortgages, loans for automobiles and purchases on credit.

That, in turn, could reduce consumer demand and cool the economy. But the Fed hopes to impose higher interest rates without pushing the US economy, the world’s largest, into a recession.

This article is republished from – Voa News – Read the – original article.

Nation World News Desk
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