Inflation in the United States fell to 8.3% in August due to gasoline prices, although the data was above what the market expected.
The United States reported a 0.1% monthly rise, dashing hopes that peak inflation had peaked, and cementing chances of a 75 basis point rate hike by the Federal Reserve next week.
The drop in gasoline prices was offset by rising rent and food costs.
Headline inflation is slowing as goods prices pull back after rising earlier this year, amid an easing of bottlenecks in global supply chains and a shift in spending toward services. .
Gasoline prices in the United States have fallen from an all-time high of more than $5 a gallon in June, according to AAA data. On Tuesday, the median was $3,707 a gallon.
Fed officials meet for their monetary policy meeting next Tuesday and Wednesday, with inflation remaining well above the US central bank’s 2% target. Fed Chairman Jerome Powell reiterated last week that the central bank was “strongly committed” to fighting inflation.
President Joe Biden, who has made inflation his top economic priority, is going through two crucial months before the midterm elections in November. The Republican opposition regularly reproaches him for a policy of economic aid that, it considers, contributed to the inflationary spiral.
“Inflation is too high and it is essential to reduce it,” Treasury Secretary Janet Yellen reiterated on CNN on Sunday, who also acknowledged that there is “a risk of recession” due to the rate hikes decided by the Federal Reserve to treat to cool down the economy and contain price increases
With information from Reuters and AFP
