Friday, 22 September 2023
WorldUS inflation 'rebounds' in August: It stands at 3.7% and gives the...

US inflation ‘rebounds’ in August: It stands at 3.7% and gives the Fed ‘weapons’ to raise the rate

Inflation in the United States accelerated in August and stood at 3.7 percentthe Bureau of Labor Statistics reported this Wednesday.

The data is key for the next decision of the Federal Reserve, which must analyze whether to continue raising the interest rate or apply a new pause.

This is the second consecutive month that prices increase at an annual rate, after a streak of more than a year of declines. In monthly terms, consumer prices rose 60 basis points compared to July.

The annual rate of core inflation, which measures the rise in prices without counting energy or food and it is one of the indicators on which the Fed focuses most to make its decisions, it stood at 4.3 percent during August. Monthly, core inflation rose 30 basis points compared to July’s figure.

What products rose the most in price in the US during August?

In monthly terms, the gas It is the component that contributed the most to the increase in prices, with an increase of 10.6 percent, although in interannual terms it fell to 3.3 percent.

He also contributed the continued advance of housing prices, which increased for the 40th consecutive month, this time by 30 basis points. Accumulates a year-on-year increase of 7.3 percent

The price of foodfor its part, rose 20 basis points in August and accumulated a year-on-year increase of 4.3 percent.

Until July, US inflation had fallen year-on-year for 12 consecutive months since it broke its record of the last 40 years by standing at 9.1 percent in June 2022, as a result of the interruption of the supply chain due to Russia’s war against Ukraine and the last blows of the pandemic.

To try to control prices, the Federal Reserve began to raise the interest rate in March 2022, and after 11 increases, the benchmark is today in a range of 5.25-5.5 percent, its highest level since 2001.

According to Fed Chairman Jerome Powell, it will still take time to see the effects of the central bank’s monetary policy, especially on inflation, which will still take months to return to the desired 2 percent.

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