Inflation in the United States grew by 0.4% in September, compared to August, above expectations (0.3%) and above the 0.1% of the previous record, despite the unprecedented effort of the Federal Reserve (Fed) for curbing and cooling the increase in prices.
The Dow Jones lost more than 400 almost automatically in the face of a much “hotter” data than expected, which predicts that the US central bank, which has raised interest rates three points since March, will keep a firm hand on its monetary politics.
In the annualized index, prices rose 8.2%, one tenth lower than in August. This marks the third consecutive month of decline, after the peak of 9.1% last June, although the territory of the highest level reached in the 1980s continues to float. Analysts thought that, despite continuing high prices, the reduction in September would be more significant.
In contrast to the fact that the price of energy fell by 2.1%, which includes a 4.9% reduction in gasoline, there was a significant increase in food prices, of 0.8%, in line with August, and an annualized figure of 11.2% rise.
And even worse. If the most volatile elements of this index are excluded, such as those mentioned for energy and food, the so-called core of the consumer price index rose by 0.7%, above the forecast of 0.4% and the August figure. This means an increase of 6.6% in the course of the last twelve months. The cost of housing and medical care are two of the main factors in this escalation.
This increase in prices, published this Thursday, is bad news for workers. Their average hourly wage lost 0.1% once adjusted for the monthly increase in inflation. Compared to the same period in 2021, the salary loss reaches 3%.
This rate of increase in prices is much higher than that predicted by the leaders of the Federal Reserve, whose inflation target is 2%, and offers no respite to President Joe Biden or to the Democratic aspirations of coming out not so badly in the mid-term elections. next November. That is where control of both houses of Congress is at stake. Inflation continues to be the greatest concern of Americans, and of the world in general, as evidenced by the cry of alarm that resounds these days at the annual meeting of the International Monetary Fund (IMF) and the Central Bank that are being held this week in Washington.
This report from the federal Department of Statistics shows that inflation is a much more persistent problem and resistant to the "antidote" represented by the considerable increase in interest rates. Keep going, so the Fed has an excuse to continue its aggressive monetary policy in the two remaining meetings this year. There is now more scope for another pair of 0.75% rate hikes, which would be as unusual as five consecutive three-quarter point increases.
In the minutes of the latest Fed meeting, released Wednesday, Federal Reserve governors expressed astonishment at the stubbornness of inflation. The pressure on the action of the Fed has only increased.
