The Consumer Price Index (CPI) in the United States registered an interannual rate of 8.2% in September, which marks a slight slowdown of one tenth compared to 8.3% in August and the peak of 9% in June, announced the Bureau of Labor Statistics (BLS) under the Department of Labor.
Despite this, inflation is increasingly affecting more sectors of the economy, beyond the volatile prices of food and energy: core inflation was 6.6% annually compared to 6.3% last month, which which represents a record not seen in the last 40 years.
At the same time, the core index rose 0.6% for the second consecutive month.
Meanwhile, the general monthly data -which includes food and energy- was 0.4%, compared to 0.1% registered in August and 0.0% in July.
After knowing the data, the president of the United States, Joe Biden, acknowledged that the cost of living is “suffocating” Americans.
“This has been like this for years and they didn’t need today’s report to let them know”he remarked in a statement released by the White House.
However, he noted that the index “shows some progress in the fight against rising prices, even though there is more work to be done.”
“Inflation over the past three months has averaged 2%, annualized. This is down from 11% the previous quarter,” Biden said.
He also stressed that the Inflation Reduction Law, approved last August, will allow lower prices for medicines and energy, among other sectors.
“The number one priority of the Republicans is to attack the law. That is exactly what is wrong at this time. If they take control of Congress, the cost of living will go up, not down,” the president questioned, referring to the Republican opposition.
Subas that have a direct impact on citizens
September’s inflation was driven by rents, food and healthcare, among “many of the taxpayers” to it, according to the BLS, and its number was higher than estimated by analysts, according to the Bloomberg news agency. .
These increases, in turn, were partially offset by a 4.9% drop in gasoline, as well as a 2.1% drop in the energy component, which, however, continues to accumulate a rise of 19 .8% per year.
In the case of a gallon (3.7 liters) of gasoline, the price, after reaching a peak of US$5,016 in mid-June, fell to an average of US$3,913, according to data from the American Automobile Association (AAA). .
Inflation hits the pockets of Americans because their wages do not keep pace with price increases: real wages lost 3.4% compared to a year ago.
However, the price at the pump began to rise from the middle of last month, a situation that could worsen with the recent cut in production decided by the Organization of Petroleum Exporting Countries and its allies (OPEC +).
For its part, food had a monthly rise of 0.8%, at the same level as in August and with an annual rise of 11.2%, 3 points more than the average price.
Rents, a component that represents almost a third of the index, rose 0.7% monthly and 6.6% annually, showing no signs of slowing down.
Meanwhile, the values of 0 kilometer cars also rose – while those used fell for the third consecutive month – and plane tickets.
Inflation hits the pockets of Americans because their wages do not keep pace with price increases: real wages lost 3.4% compared to a year ago.
Faced with inflation whose deceleration is less than expected, the Fed will have more pressure to continue tightening its monetary policy and has reaffirmed on several occasions that it will continue with this premise despite the fact that this implies a rise in unemployment and a recession
The entity has already ordered a rise in reference interest rates of 25 percentage points in March, 50 in May, and three consecutive rises of 75 points in June, July and September, taking it from levels close to zero to a range of between 3 % and 3.25%, which had not been registered since January 2008.
With today’s data and employment and consumption numbers that continue to be solid and that -therefore- conspire with a cooling in demand (the main factor for the FED of inflation), the market discounts that the agency will make a fourth consecutive rise of 75 points in the monetary meeting that will take place on November 1 and 2.
