US consumer prices will not rise quite as much in August

Dhe strong inflation in the United States eased slightly in August. Goods and services cost 5.3 percent more in August than in the same month last year, as the Ministry of Labor announced on Tuesday. Experts polled by Reuters had expected this increase – after plus 5.4 percent in July. “That is good news: the inflationary pressure has weakened slightly,” said economist Bastian Hepperle from Bankhaus Lampe. Investors reacted cautiously to the inflation figures. The Dax was 0.3 percent higher in the afternoon with 15,739 points.

Inflation is thus still well above the inflation target of the US Federal Reserve (Fed), which is aiming for two percent in the medium term. In June the rate was 5.4 percent. This was the highest rate since August 2008. Compared to the previous month, consumer prices rose by only 0.3 percent in August after 0.5 percent in July. In June, prices had even risen by 0.9 percent in a month-on-month comparison. Core inflation, excluding components that often fluctuate in price, such as energy and food, was 4 percent compared with the same month of the previous year. In July it was 4.3 percent.

The surge in inflation was mainly due to temporary influences related to the pandemic. According to the economist, inflation rates are likely to decline again from spring 2022. The US Federal Reserve (Fed), which is aiming for full employment and stable prices, is keeping a close eye on the numbers. In view of the increased inflation and the ongoing recovery on the labor market after the corona shock, she is considering shutting down her crisis aid.

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