The drop in gasoline prices was offset by rising rent and food costs.
?? August inflation in the US was higher than expected. The annual decreased for the 2nd consecutive month to 8.3%, from 8.5% in July. It is the lowest reading in 4 months, but it was above market forecasts of 8.1%. The energy index increased pic.twitter.com/4bX4N0gFEi
– Janneth Quiroz Zamora (@Janneth_QuirozZ)
September 13, 2022
Headline inflation is slowing as goods prices pull back after rising earlier this year, amid an easing of bottlenecks in global supply chains and a shift in spending toward services. .
Gasoline prices in the United States have fallen from an all-time high of more than $5 a gallon in June, according to AAA data. On Tuesday, the median was $3,707 a gallon.
Fed officials meet for their monetary policy meeting next Tuesday and Wednesday, with inflation remaining well above the US central bank’s 2% target. Fed Chairman Jerome Powell reiterated last week that the central bank was “strongly committed” to fighting inflation.
President Joe Biden, who has made inflation his top economic priority, is going through two crucial months before the midterm elections in November. The Republican opposition regularly reproaches him for a policy of economic aid that he believes contributed to the inflationary spiral.
“Inflation is too high and it is essential to reduce it,” Treasury Secretary Janet Yellen reiterated on CNN on Sunday, who also acknowledged that there is “a risk of recession” due to the rate hikes decided by the Federal Reserve to treat to cool down the economy and contain price increases
With information from Reuters and AFP
