Beyond that data, it is above all the rise in prices in just one month that shows that inflation will be difficult to bring down: the increase in prices accelerated again to 0.4% last month against only 0, 1% of August. Also, the figure exceeds the 0.3% increase expected by private analysts.
Items
The increases in the prices of real estate rentals, food and medical care “were the main factors that contributed to the monthly increase,” the Department of Labor detailed in its statement. These are sensitive items for the middle class and the poorest.
Naphtha prices, however, fell 4.9%, thus continuing their decline from the highs to which the war in Ukraine had taken them.
The so-called core inflation, which excludes volatile food and energy prices, remained stable in the month, at 0.6%, but accelerated in the year to 6.6%.
It’s even a “new 40-year high,” said Rubeela Farooqi, chief economist at consultancy HFE. “Consumer prices surprised to the upside in September,” she commented.
However, inflation has slowed since reaching
It peaked in June, when prices soared 9.1% year-on-year, the biggest increase since December 1981.
With these data, Biden’s hopes that his Democratic Party will reach the mid-term elections on the 8th of next month with inflation in decline faded.
Yesterday’s report was bad news for the ruling party, which hopes to retain control of Congress and must convince voters, deeply concerned about rising prices, that they are the most capable of reducing inflation, although this, in fact, is holding firm under his administration.
The White House, which was slow to acknowledge the persistence of the phenomenon, has tried to balance showing empathy for families struggling to pay the bills and boasting about other elements of the US economy, such as the strength of the job market.
Reaction
“Americans are squeezed by the cost of living — that has been true for years and they didn’t need this report to tell them,” Biden said in a statement.
The head of state said that said report shows some progress in the fight against rising prices, but that there is still work to be done. He sought in this way to ask the electorate for patience.
“But even with these advances, prices are still too high. Fighting global inflation that is affecting countries around the world and working families here at home is my top priority,” Biden said in his statement.
In this sense, he stressed that the Inflation Reduction Law, approved in August, will allow lower prices for medicines and energy, among other sectors. “The number one priority for Republicans is to attack that law. That’s exactly what’s wrong right now. If they take control of Congress, the cost of living will go up, it won’t go down,” questioned the president in a campaign key.
The war in Ukraine has triggered food prices and, above all, fuel prices, but analysts maintain that the rise in prices began before the conflict, which broke out on February 24.
Source: Ambito
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