Inflation in the United States fell again in September, for the third consecutive month, and placed its year-on-year rate at 8.2%one tenth less than in August, according to data published this Thursday by the Bureau of Labor Statistics (BLS).
Compared to the previous month, consumer prices rose four tenths, after having risen slightly in August.
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The year-on-year data show that core inflation (which measures the rise in consumer prices excluding those of food and energy) rose 6.6%, three tenths more than in August and seven more than July.
For its part, the energy price index stood at 19.8% during the twelve months ending in September compared to 23.8% in August; and that of food ended at 11.2%.
In the monthly comparison, September’s rise was spurred on by higher housing, food and health care prices, although it was offset by the 4.9% drop in gasoline.
In fact, the food index rose 0.8% compared to August, while the energy index fell 2.1% thanks to this drop in gasoline, although natural gas and electricity rose 2.9 % and 0.4%, respectively.
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Core monthly inflation rose 0.6% in September, the same as in August.
Aside from housing and health care, auto insurance, new vehicles and education also saw increases from August.
By contrast, in September the prices of second-hand cars, communications and clothing fell.
Inflation remains high in the US despite interest rate hikes by the Federal Reserve (Fed), which in its last meeting in September decided to raise them 0.75 points, the fifth time since March, confirming the direction started months ago to reduce prices.
In June, inflation reached its highest figure in forty years, 9.1%, although in July it began to drop to 8.5%.
According to his extract from the minutes of the last meeting of the Fed, released on Wednesday, the members of the Federal Open Market Committee of the central bank anticipate that unemployment will have to rise in the country for inflation to fall.
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Inflation remains high in the US despite interest rate hikes by the Federal Reserve (Fed),
During their meeting, held between September 20 and 21, the participants “emphasized that the cost of doing too little to reduce inflation probably outweighs the cost of doing too much.”
Regarding the shortage, the Fed expects inflationary pressures to persist in the short term and cites as factors that support this prediction the situation of the labor market, the continued problems in the supply chain and the increases in the prices of services.
In the medium term, they predict a gradual reduction in prices in the coming years.
In the discussion on future measures, the members of the committee advanced that new rises in rates will be “adequate”, thus maintaining “a restrictive political position”.
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Along with the rise in rates, the Fed revealed its economic forecasts in September, which contemplate an interest rate of 4.4% by the end of 2022, one point above what was estimated in June.
By the end of 2023, he expects rates to rise slightly to 4.6%, before falling to 2.9% by the end of 2025.
Despite remaining high, the drop in year-on-year inflation in recent months has given a small respite to the US economy, which at the end of July entered what experts consider a technical recession by chaining two quarters of falls in gross domestic product (GDP).
*With information from EFE
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