On Friday, Fed Chairman Jerome Powell acknowledged that inflationary pressures “are likely to last longer than expected” and said they could last until “well into next year.” The leader of the US central bank added that he hopes the Federal Reserve will begin to withdraw the extraordinary measures it has provided to help the economy.
The Global economy it is experiencing moments of uncertainty due to inflation. After the efforts that countries are making to recover from the post-pandemic, the main member countries from the G20 analyzed with concern a threat that seems to extend for a longer time, the inflation.
The rebound in economic activity following the restrictions imposed by the coronavirus exposed shortages throughout the supply chain. Companies are not finding workers, boats or fuel, which threatens an incipient recovery.
Inflation in the US
The US consumer price index rebounded in September, driven by rising energy costs and global supply chain disruptions. It thus marked its highest level since 2008, when it rose amid the global financial crisis that erupted after the collapse of Lehman Brothers.
Inflation accelerated in September to 0.4% compared to the previous month, compared to 0.3% in August, according to data published on Wednesday by the Labor Department, while analysts expected it to be flat. Compared to September 2020, prices rose 5.4%, more than the 5.3% year-on-year increase observed in August and marked the highest level in 13 years.
If food and fuel prices, which are the most volatile, are excluded, core inflation in September was 0.2%, with an annual rate of 4%.
Energy prices rose 24.8% in September and food prices rose 4.6%, according to the government report.
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