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US manages to control its inflation after seven months of growth

Inflation in the United States rises for months, as April softens slightly standing at 8.3%, two tenths less than in…

By admin , in news , at May 11, 2022

Inflation in the United States rises for months, as April softens slightly standing at 8.3%, two tenths less than in March, although it is still at levels not seen for forty years. The monthly increase in consumer prices between March and April was 0.3%.

The first break on the price rise is a good sign for the US economy, although we will have to wait for the next few months to confirm the trend continuation.

In any case, still very high inflation is under pressure from rising energy and food prices.

energy prices (including gasoline, crude oil, electricity and natural gas) increased by 30.3% over the past twelve months, driven by an 80.5% increase in crude oil prices, while Gasoline rose 43.6%.

As for the monthly change, energy consumption prices declined 2.7% in April compared to March, with energy being one of the main reasons that lowered inflation last month.

loss food pricesOn the other hand, there was an increase of 9.4% in one year, especially related to shopping in supermarkets, which increased by 10.8%, while dining at restaurants increased by 7.2%.

If food and fuel, which are the most volatile, are excluded, core inflation stood at 6.2% on a year-on-year basis.

The price of housing, of which one has the highest weight in the calculation of underlying inflation, rose 5.1% in one year, and had a monthly increase of 0.5%.

In the automobile sector, the cost of new vehicles increased by 13.2% in a year, while the cost of old vehicles increased by 22.7%.

Interestingly, the prices of older vehicles (which skyrocketed in late 2021) have begun to fall in recent months: they fell 0.2% in February, 3.8% in March, and 0.4% in April. Went. ,

Price hikes have become a main headache for US President Joe Biden, who on Tuesday said a day before April’s rate was published that inflation was his “top domestic priority”.

Biden continues to blame Russian President Vladimir Putin and his decision to invade Ukraine, of high inflation in the United States.

A conversational tactic the White House has been practicing for weeks, but has not caught on among the media or the majority of the population, especially since inflation was soaring months before the war in Ukraine.

This Wednesday, at a time when inflation figures were known, the US government announced three measures to counter the rise in agricultural prices: expanding the notions of insurance coverage for some crops, technical support for so-called “precision agriculture”. Increase. and double funding for domestic fertilizer production.

The fight against inflation has also become a priority for the Federal Reserve (Fed, US Central Bank), which last week announced a half-digit hike in interest rates, the biggest increase in more than two decades, and added further hopefully. ability

Thus, after nearly two years of 0% to reduce the impact of the COVID-19 pandemic on the economy, the world’s largest economy’s official interest rate is now between 0.75% and 1%.

US manages to control its inflation after seven months of growth

2022-05-11 15:10:21