US consumer prices rose more-than-expected last month, a sign that the inflation struggle in the world’s largest economy is far from over.
Inflation, the rate at which prices are rising, was 8.2% in the 12 months to September, compared to 8.3% in August.
Despite the decline, the number was still higher than forecast.
Inflation in the US is being watched closely as the Federal Reserve’s efforts to tame the problem is driving up the dollar and the cost of borrowing around the world.
The rate is well above the central bank’s 2% target, meaning the Federal Reserve is likely to continue raising interest rates to cool rising prices.
US inflation has eased since hitting 9.1% in June, helped by a fall in fuel prices at the pump.
However, the problem continues to affect other parts of the economy, such as B. Housing costs and medical costs.
Food prices have risen by 13% in the last 12 months, and housing and medical costs are also rising sharply.
“The composition of the inflation data is perhaps even more concerning than the total number,” said Seema Shah, Principal Asset Management’s chief global strategist.
“Increases in housing and medical indices … confirm that price pressures are extremely persistent and will not abate without a Fed fight.”
By raising interest rates, the Fed is making borrowing more expensive, a move aimed at reducing demand, particularly for big-ticket items like cars and homes, and relieving the pressures that are driving prices up.
Add Comment