Inflation in the United States shows signs of moderation in August

WASHINGTON.- The annual inflation was reduced in August in USA in one tenth, to 5.3%, in the first sign of a cooling in prices after months of sustained increases, although it still remains at very high levels.

The monthly report of the Bureau of Labor Statistics (BLS) indicated that the consumer price index in August rose 0.3%, two tenths less than in July and below analysts’ expectations.

August is the lowest monthly price increase in half a year, which suggests that the rebound seen in recent months could have peaked.

Core inflation, which excludes food and fuel prices, which are the most volatile, was 0.1% in August and has accumulated a 4% increase in the last year.

This price increase is due to consumer spending and the government’s injections of billions of dollars to alleviate the crisis of the pandemic.

In August, the price boom occurred in the energy sectors, with gasoline registering an increase of 2.8%, and food, 0.4%.

In the last twelve months, gasoline has increased its price by 42%.

Still at levels not seen in more than a decade

The moderation in inflation is largely due to the decline in two sectors that had recently exploded: used vehicles fell 1.5% and transport services fell 2.3%.

“The one-month data does not clarify the situation. The big question remains what happens with house prices, which rose 0.3% in August,” said Jason Furman, an economist and professor at Harvard University in his Twitter account, by targeting less volatile sectors.

Despite the August data, annual inflation in the US remains at levels not seen in more than a decade and accumulates three months in a row above 5%.

“The major (inflationary) pressures have probably passed, but significant pressures still remain,” said Aichi Amemiya, an economist at investment bank Nomura, in a note to clients.

Although most economists agree that as a result of the lifting of the restrictions imposed by the pandemic and the economic reopening it is normal to observe price increases, the question is whether it is a temporary rebound or is due to underlying reasons, what would be more dangerous.

Respiro para the FED

The US Federal Reserve (Fed). He has assured that the causes of the increase are “transitory” and foresees that the inflation rate will moderate in the coming months.

For now, there is little evidence that “inflation is rising beyond a relatively small group of goods and services that have been directly affected by the pandemic and the reopening of the economy,” Fed Chairman Jerome Powell told end of august.

The inflation data for August may have given a respite to the US central bank that had pointed to the possible beginning of the withdrawal of the extraordinary monetary stimulus program through the monthly purchase of 120,000 million dollars in bonds, and possibly will cause it to be take it slower.

The Fed is scheduled to hold its next monetary policy meeting next week, at which it will offer its new growth and inflation projections.

In July, the Powell-led bank put estimated 2021 growth in the US economy at 7% and year-end inflation at 3.4%.

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