USA, inflation at 7.5%, never higher in 40 years
“Inflation in the United States rose to 7.5% in January, half a point more than in December ”, as confirmed by the Bureau of Labor Statistics. Although Joe Biden had said that the inflationary trend would be temporary, the growth continued and, above all, at a level that had never been seen since 1982. The main prices that are dragging the process are those food and electricity. Food products increased by 0.9% in January, almost double compared to the previous month (0.5%). Even the energy cost grew by 0.9%, but in this case the increase was partially offset by falls in natural gas and petrol. In part, also in the United States, the trend was influenced by both the global energy crisis and the face to face between Ukraine and Russia.
US inflation has been on the rise for 10 months
Growth in January was the seventh in the last 10 months (almost always by half a percentage point). The main increases that have been reflected in the pockets of consumers concerned the real estate, furniture, household services, used cars and trucks, clothing and medical bills. The cost of energy has grown by 27% in the last year and foodstuffs, by 7%, in an interannual rate. But in reality the cost of some products was higher: 12.5% for meat, chicken, fish and eggs. The support of the Government (significant and ongoing throughout the pandemic), household savings and rising wages (which grew faster in 2021 than in recent decades) have allowed Americans to cope with rising cost of living. Despite this, wages (which grew by 5.7% hourly) are still behind inflation. Indeed. according to data from the Bureau, entrepreneurs raised their employees’ wages in 2021, but only 4%.
US, to stem inflation the Fed will raise rates
To stem inflation, the Federal Reserve (the US central bank) has decided to gradually (three times in 2022) raise interest rates, now at 0%. This is also thanks to excellent growth of the American economy (+ 5.7%) and employment ( an unemployment rate of 4%). “With high inflation, well above 2%, and a strong labor market, the monetary policy committee is planning to raise rates,” the Fed confirmed on January 26th. Economic observers, for their part, are optimistic and convinced that “uncertainty remains high but the basic effects, the stabilization of energy prices and, above all, the easing of global supply constraints and the shortage of the labor market , they should help reduce inflation more rapidly in the second half of the year ”.
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