Although not by as much as anticipated, price hikes in the US slowed down last month as rising housing and food expenses countered a drop in gas prices.
The Labor Department said that annual inflation, or the rate at which prices increase, decreased to 3.1% from 3.4% one month earlier.
A lot of economists predicted that inflation would drop to 2.9%.
According to the most recent economic assessment, the government may not have completely contained inflation.
The report, which crushed any last hopes that progress in controlling the issue may persuade the US central bank to decrease rates early this year, caused financial markets in the US to open lower.
According to Premier Miton Investors’ chief investment officer Neil Birrell, “it looks like everything is running hotter than hoped for.” “
Inflation, a gauge of how quickly prices are rising, surged in the US in 2021 as a result of a robust post-pandemic economy that led to a shortage of supplies and high demand, forcing many businesses to raise prices.
In June 2022, it exceeded 9.1% as a result of an increase in oil prices brought on by the conflict in Ukraine.
Since 2022, a number of supply-related problems have resolved and demand has decreased, partly as a result of the Federal Reserve’s announcement of a significant increase in borrowing prices.
However, price rises have persisted, particularly for services.
Ahead of the nation’s presidential election in November, voters’ discontent has been exacerbated by the continuous price increases, which have negatively impacted incomes.
