US Inflation Hits Lowest Level in Over Three Years
Inflation in the US continued to slow down last month, with consumer prices rising just 2.5% from a year earlier, according to official data. This is the slowest increase since February 2021 and is down from 2.9% in July, despite a surprise increase in housing costs.
This drop in inflation has boosted expectations that the Federal Reserve might lower interest rates at their next meeting.
Prices for essentials like gas and used cars have decreased, contributing to the overall slowdown. Grocery prices remained stable from July to August and are up less than 1% from last year. Gas prices also fell significantly, down over 10% from August 2023.
However, other costs, such as airline tickets and rent, have continued to rise. Excluding food and energy, prices increased by 3.2% over the year, reflecting ongoing pressure in some areas.
Despite these improvements, some experts caution that inflation isn’t completely under control yet. Paul Ashworth from Capital Economics noted that while inflation has been tamed, housing costs are still problematic. Brian Coulton from Fitch Ratings added that while the Fed might cut rates soon, persistent inflation in services will likely slow the pace of future rate cuts.
This drop in inflation follows a period of high prices driven by pandemic-related supply issues and global events like Russia’s invasion of Ukraine, which led to a peak inflation rate of 9.1% in June 2022.
Jasmine Loeber, a stay-at-home mom from Pennsylvania, shared that while prices are becoming more manageable, she still shops carefully and notices more discounts. She mentioned that although her family recently enjoyed their first holiday in three years, high housing costs are still a significant concern for her.
The latest inflation figures come amid ongoing political debates and the anniversary of the 9/11 attacks, and Jasmine, who lives in a key battleground state, remains unsure about voting in the upcoming election.
Credit : BBC
https://www.bbc.com/news/articles/cy9e72vn1xyo