After hitting its highest rate in four decades in June, inflation of the United States of America 8.5 percent in July6 tenths less, thus giving a respite to the world’s leading economy, which is struggling to continue to limit prices.
The annual decline is occurring, according to data released this Wednesday by the Bureau of Labor Statistics (BLS). after consumer prices stabilize (0%) this month, mainly thanks to the drop in gasoline prices 7.7% in July.
The fall in the inflation rate is giving a little respite to the US economy, which has entered a period that experts consider a technical recession at the end of July. chain two quarters of the falls gross domestic product (GDP).
However, it’s a diagnosis not shared by the government headed by Joe Biden. does not believe the country is in a recession scenario given the robustness of its economyespecially from the labor market, with an unemployment rate of 3.5%.
The BLS as a whole noted: energy prices fell 4.6% last month. and duration gasoline and gas (3.6%) decreased, The price of electricity rose 1.6 percent.
In the last 12 months, energy prices have increased 44% year-on-year, while gasoline has increased 32.9%.
Faced with the fall in energy prices, food prices continued to rise, 1.1% in a month. This was the seventh consecutive monthly increase of over 0.9%.
On an annual basis, food prices have increased by 10.9% in the last 12 months. Eating at home was 13.1% more expensive than a year ago, while dining away from home became 7.6% more expensive.
Core inflation, which measures consumer price increases minus food and energy increases—the most volatile ones— realized at an annual rate of 5.9%with an increase of 0.3 per month.
Although prices fell by half a point this month, an annual increase of 9.2% in transportation draws attention.
they kept climbing new vehicle pricesIt accumulates 0.6% and an annual increase of 10.4%.
This Wednesday morning, the president of the United States, Joe Biden, made a slight reference to consumer prices in a message on social networks. “One-third of core inflation was due to high car prices due to semiconductor shortages” and assured that the US would once again “take the lead” with the microchip law passed yesterday.
The law designs investments that will encourage the production of these ingredients in the United States to reduce reliance on those made abroad, particularly in China, a measure the Biden administration hopes to help lower consumer prices.
Three months into the midterm elections, high inflation remains the Biden government’s main concern.
Also from the Federal Reserve, which raised interest rates again on July 27. 2.25% and 2.5%.
In the view of Charles Lichfield, economist at the Atlantic Council think tank, “Inflation is slowing down not because of the Federal Reserve’s compliance policy, but because of falling gasoline prices.”
“This is good news as it can boost consumer confidence”but with ongoing supply chain problems and tight labor markets, he cautioned that “inflation won’t fall that fast and that may not save us from a recession”.
Source: Informacion
