Friday, June 9, 2023

USA: Consumer inflation falls to 7.7% in last 12 months

WASHINGTON ( Associated Press) – Price growth in the United States softened in October, the latest sign that inflationary pressures may ease as the economy slows and consumers become more cautious.

The Labor Department said Thursday that consumer inflation in October was 7.7% annually and 0.4% per month, compared to September. The annual increase was the smallest since January. Core inflation – which does not include volatile food and energy prices – rose 6.3% annually and 0.3% monthly.

All figures were lower than economists expected.

Despite these figures, the Federal Reserve is expected to continue raising interest rates to control inflation. However, many economists have warned that the Fed could hit a recession next year if it continues to aggressively strengthen credit.

So far this year, the US central bank has raised its benchmark interest rate by six times with considerable adjustments, which in turn have made other loans such as mortgages, car purchases and other high-cost expenses more expensive, potentially increasing the risk of getting a loan. There is a risk of recession.

Inflation was one of the top concerns of many voters in the mid-term assembly elections held on Tuesday. His economic concerns contributed to the loss of Democratic seats in the House of Representatives, even though Republicans failed to make the huge political gains that many had hoped for.

As per other indicators, apart from the Labor Department data, inflation is starting to ease and may continue in the coming months. For example, most indicators of workers’ wages show that the tangible benefits of the past 18 months have eroded and started to fall. Although rising wages are not the main cause of inflation, they can add to inflationary pressures if companies compensate for higher labor costs by charging customers more.

On the other hand, supply chain disruptions have largely subsided, with the exception of automakers, who are still struggling to acquire the computer chips they need.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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