Sunday, October 1, 2023

Gasoline boosted inflation in the United States and snapped a streak of contraction

First change: 09/14/2023 – 04:46 Last change: 09/14/2023 – 05:06

This is the second consecutive month that the world’s leading economy has reported an acceleration in annual inflation data. In August it stood at 3.7%, and in July at 3.2% year-on-year, a month in which it broke a 12-month falling streak. Although the figure for the eighth month of the year is five tenths higher than the previous month, the market predicts that it will be close to 3.6% and will not negatively affect the behavior of Wall Street.

A fact that did not surprise Wall Street investors. The annual inflation rate in the United States stood at 3.7%, just one-tenth higher than expected by economists polled by Reuters. In monthly terms, consumer prices increased by six tenths compared to July, mainly due to the increase in fuel prices.

And precisely, on a month-to-month basis, fuel prices are the most contributing to the price increase, with an increase of 10.6%; In interannual terms they fell 3.3%.

Gasoline prices, which have fueled inflation concerns, rose to $3.984 per gallon in the third week of the month, compared to $3.676 per gallon during the same period in July.

“Today’s report provides further evidence that core inflation is declining toward pre-pandemic levels, at a time when employment remains stable,” said US President Joe Biden, who is also He added that “that’s why I remain focused on reducing energy costs, investing in clean energy to strengthen our energy security.”

Core inflation, an indicator that the FED regularly reviews and which excludes changes in food and energy prices, fell by four-tenths and stood at 4.3% year-on-year in August, which was the lowest number since September 2021 and what may mean the path of the next decisions of the Central Bank.

Interest rate traders now see a 97% chance the Fed will hold benchmark rates steady in September, and a 61% chance there will be a pause in November, according to the CME FedWatch tool. .

With Reuters

World Nation News Desk
World Nation News Desk
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