US inflation rose significantly in August. Consumer prices rose 3.7 percent compared to the same month last year, the US Department of Labor announced in Washington on Wednesday. Economists had expected an average inflation of 3.6 percent.
Last month the percentage was 3.2 percent, after a noticeable decline in the previous months. The latest development was mainly driven by gasoline prices, which rose significantly. However, there was a slowdown in inflation, excluding energy and food prices.
Core inflation fell from 4.7 to 4.3 percent. This rate receives special attention from the American central bank, the Fed. According to experts, it reflects the general price development better than the total tariff, because components that are sensitive to fluctuations are excluded.
Biden: Gasoline puts pressure on budgets
US President Joe Biden welcomed the decline in core inflation, but stressed: “I know the rise in gasoline prices over the past month has put pressure on household budgets.” That’s why he continues to focus on lowering energy costs.
Currently, there is a particular focus on inflation data because it is of great importance to the Federal Reserve’s monetary policy. The monetary authorities will make their next interest rate decision next week. No further tightening is currently expected after the Fed sharply raised its key interest rates by more than five percentage points since March 2022. (sda/awp/dpa)
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
