HomeWorldRising prices break US inflation forecast, rise 0.1% in August

Rising prices break US inflation forecast, rise 0.1% in August

US inflation was stronger than expected In August, the Federal Reserve is likely to be on track for a third-straight 75 basis-point interest-rate hike. The Consumer Price Index rose 0.1% since July, after showing no change in the previous month, Labor Department data showed Tuesday. Compared to a year ago, prices climbed 8.3%, a slight decline.

The so-called core CPI, which isolates the more volatile food and energy components, advanced 0.6% from July and 6.3% from a year earlier. All measures came within the above forecasts. Shelter, food and medical care were among the biggest contributors to the price rise.

Inflation points up The extremely high cost of living for Americans, despite some relief at the gas pump. Price pressures are still historically high and wide, pointing to a long road toward the Fed’s inflation target.

Chair Jerome Powell It said last week that the central bank would act “vigorously” to achieve price stability, and some policymakers voiced support for historically large rate hikes. Officials have said their decision next week will be based on the “totality” of the economic data they have, which also shows a strong labor market and weak consumer spending.

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Following the data, Treasury yields rose, while S&P 500 index futures declined and the dollar gained. Traders raised bets that the Fed would raise interest rates by three-quarters of a percent, now seeing such an outcome as a lock-in.

Prior to the report, several Wall Street forecasters, including Evercore ISI and Deutsche Bank AG, raised their estimates to call for a 75 basis-point move.

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Persistently high inflation has dragged down President Joe Biden’s approval rating and jeopardized Democrats’ chances of maintaining their thin congressional majority in November’s midterm elections. Later on Tuesday, at a White House ceremony, Biden plans to argue that he and his fellow Democrats have helped shore up the economy because they called for a sweeping new climate, energy and health care law to “reduce inflation.” Act”.

food and gas

Food costs increased by 11.4% compared to a year earlier, the highest since 1979. Electricity prices increased by 15.8% from 2021, the highest since 1981.

Meanwhile, petrol prices fell 10.6% in August, the biggest monthly drop in more than two years.

Shelter cost – which is the largest services component and accounts for about a third of the overall CPI index – continues to rise. Total shelter costs increased by 0.7% from July and 6.2% from a year earlier, both the highest since the early 1990s.

Hello Friends, My Name is Raushan Kumar. I am a Part-Time Blogger and Student. I am author of https://searchnews.in . We're dedicated to providing you the best of News, with a focus on Business, Health, Lifestyle, World, Tech, India, Gadget.


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