US inflation slows for 2nd month but remains stubbornly high

by | Sep 13, 2022 | World

Inflation in the United States has slowed for a second straight month on a sharp fall in petrol prices, yet excluding energy most other items got more expensive in August, a sign that inflation remains a heavy burden for American households.Consumer prices surged 8.3 percent in August compared with a year earlier, the government said on Tuesday, down from an 8.5 percent jump in July and a four-decade high of 9.1 percent in June. On a monthly basis, prices rose 0.1 percent, after a flat reading in July.
But excluding the volatile food and energy categories, so-called “core prices” jumped 0.6 percent from July to August — up sharply from 0.3 percent the previous month and dashing hopes, for now, that core prices might be starting to moderate. In the 12 months ending in August, core prices jumped 6.3 percent, up from 5.9 percent in July. Rents, medical care services and new cars all grew more expensive in August.
Core prices typically provide a clearer read on where costs are headed than overall inflation does. Stock index futures tumbled on the worse-than-expected core figures, with many investors fearful that the Federal Reserve will now raise interest rates even faster in its drive to curb inflation.
Inflation remains far higher than many Americans have ever experienced and is keeping pressure o …

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