Business cycle Inflation picked up slightly in the United States in September and is still at a record high for 13 years

Inflation was 5.4 per cent in September, driven in particular by higher energy prices.

Consumer prices higher prices, ie inflation, accelerated slightly in the United States.

According to data released by the Ministry of Labor on Wednesday, the inflation rate was 5.4 per cent in September, which was strengthened in particular by higher energy prices.

Another major reason is disruptions in international supply chains, which have led to shortages of many commodities and raised consumer prices.

In August the inflation rate was 5.3 per cent and in July 5.4 per cent. Prior to this year, inflation in the United States was over five percent nearly 13 years ago.

Core inflation, closely monitored by economists and central banks, remained unchanged at 4.0 per cent in September. The effect of energy and food on the change in price levels has been removed from core inflation.

The inflation rate of the central bank’s price stability target must average 2% over the long term.

Read more: Accelerating inflation could crush the entire global economy, and investors are scared

September midway the central bank hintedthat it will begin to reduce its purchases of securities to curb the financial damage of the coronavirus pandemic during the autumn.

Today, the central bank currently buys $ 120 billion worth of federal bonds and mortgage-backed securities from the market every month.

The purpose of the purchases is to ensure that banks can provide loans to companies and households affected by the pandemic on favorable terms.

Only after the cessation of securities purchases will the central bank consider raising the key interest rate. The key interest rate is currently in the range of 0-0.25%.

Based on the forecasts published by the central bank in mid-September, it is possible that the key interest rate will be changed at the end of next year.


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