Tuesday, October 3, 2023

US year-on-year inflation rises again in August

Washington, USA.

The Inflation increased year-on-year in August USA for the second month in a row, putting pressure on monetary authorities struggling to contain rising prices.

The consumer price index (CPI) rose to 3.7% year-on-year, compared to 3.2% in July, according to Labor Department data released on Wednesday.

The number exceeds 3.6% expected by analysts According to Market Watch consensus, although in a month the inflation It was 0.6%, compared to 0.2% in July, which was in line with expectations.

Gasoline prices contributed the most to the monthly increase, “accounting for more than half of the increase,” the Labor Department explained in its press release, which also highlighted “the continued performance of the housing index.” rose for the 40th consecutive month.”

  • After a year without increases, the inflation began to rise again in July, particularly due to property prices.

Despite the rise in gasoline, energy prices fell 3.6% from August 2022.

Without the more volatile energy and food prices, the so-called inflation The core interest rate was 0.3% in August, compared to 0.2% in the previous month. However, the annual rate of this index is It fell from 4.7% in July to 4.3% in August.

– Fed meeting –

The figures are known a week before the US Federal Reserve (fed) meet to decide when interest rates rise again hoping to reduce that inflation or keep them at current levels so as not to disrupt economic activity too much.

The reference interest rate is now in a range of 5.25% to 5.50%, the highest level in 22 years, after being increased eleven times since March 2022.

However, that is fed Prioritizes the PCE, an index of inflation that in July rose to 3.3% year-on-year and that the Federal Reserve wants to put it at about 2%.

The inflation is a central issue in the US election campaign in the run-up to the presidential election November 2024.

Democrat Joe Biden insists on his economic policy allowed to stop inflation, which had risen to 9.1% year-on-year in June 2022, the highest since the early 1980s.

Although salaries in USA in 2022 the increase increased in inflation caused a Loss of purchasing power by 2.3%.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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