US Inflation Continues to Soar

The surge in inflation in the United States (US) has not ended, according to government data released on Wednesday (13/10). The data showed that food and rent prices rose in the world’s largest economy last month. The inflation underscores the difficulties Washington’s policymakers face as they try to guide the country’s recovery from the pandemic.

The Labor Department’s consumer price index (CPI) rose 5.4 percent, seasonally adjusted in September, compared with the same month last year. From August, the figure rose slightly above analyst estimates, to 0.4 percent.

Food and housing prices accounted for more than half of the overall increase, the Labor Department said. Meanwhile, the impact of rising world energy prices is also visible in the data and some economists warn that inflation will still persist.

America has faced rising prices so far this year as businesses reopen from COVID-19 restrictions in 2020 and supply chains face shortages and delays in shipping goods.
Inflation poses a challenge to President Joe Biden, who his political opponents use to oppose his excessive spending plans.

This also makes it difficult for the US Federal Reserve, which appears to be starting to reduce economic stimulus by the end of the year, but will wait longer to raise interest rates, even though the central bank’s low-interest policy has sent prices up. [ps/jm]

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