Experts are also surprised by this increase: the rate of inflation in the USA is higher than it has been for over 40 years.
In the USA, the momentum of the price increase increased further in June. The inflation rate rose to 9.1 percent and reached the highest level in more than 40 years, the Labor Department announced in Washington on Wednesday. Inflation is at its highest since December 1981.
Economists were surprised by the strength of the price hike. Although they had expected the inflation rate to rise, they had only assumed an average of 8.8 percent. In May, inflation was 8.6 percent.
The US dollar and capital market interest rates in the US rose as an initial reaction. This suggests that the financial markets are expecting further and significant interest rate hikes by the US Federal Reserve. The Fed recently raised interest rates by 0.75 percentage points. At the next interest rate meeting at the end of the month, another large rate hike is expected.
In a statement from the White House, US President Joe Biden described the rate on Wednesday as “unacceptably high” but also outdated. The price of energy accounts for almost half of the monthly rise in inflation. The new data did not yet reflect the full impact of falling gas prices.
Biden said fighting inflation remains “the top priority.” He wants to continue to work to lower gas and oil prices – for example by increasing domestic production. In addition, he wants to use a new law to reduce the costs of everyday expenses for Americans.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
