WASHINGTON-The US Department of Labor reported on Tuesday that consumer price increases in the United States slowed down in August, indicating that inflationary pressures may begin to weaken as the country’s economy continues to recover from the effects of the coronavirus pandemic.
Data shows that August prices rose by three-tenths compared with July, breaking the eight consecutive months of rising or stabilizing consumer inflation. Consumer spending accounts for 70% of the US economy, making it the world’s largest economy.
In the past year, U.S. prices have risen by 5.3%, a slight improvement from the previous 5.4% annual increase in June and July. This is the highest increase in 12 months since 2008.
Although prices in the United States have mostly risen month by month this year, White House economic officials and policymakers at the US Central Bank and Federal Reserve believe that inflation will ease as the economy improves, especially as the consumer supply chain improves. Product improvements to meet the needs of shoppers.
Even if price increases eased in August, there is still a long way to go before the Fed’s traditional annual target of 2% is reached.
The surge in cases of the coronavirus Delta mutation-150,000 new cases per day in recent weeks-has brought new uncertainty to the economic fate of the United States and consumers’ willingness to spend, whether it is for home improvement, new cars or used cars Still traveling on vacation.
In another report, the U.S. Census Bureau reported on Tuesday that the median household income in the U.S. in 2020 was $67,500, a year-on-year decrease of 2.9%.
The United States only added 235,000 new jobs in August, down from more than 2 million in June and July. President Joe Biden attributed the decline to the spread of the Delta variant.