Inflation in the United States has been rising recently, and new data shows that it has jumped 7.5% in the last 40 years. This is the most significant increase since 1980, when the country was amidst a severe recession. The data comes from the Bureau of Labor Statistics, which released its Consumer Price Index on Wednesday.
Analysts polled by Refinitiv.
Analysts polled by Refinitiv expected US inflation to have jumped 0.2% in August after rising 0.1% in July. The inflation rate for the 12 months ended August is now 1.7%.
This is the first time since April that inflation has risen above 1.5%, the highest level since October 2018.
The main driver of the increase was higher gasoline prices, which rose 3.0% in August. Prices for food and housing also rose, while prices for clothing and transportation fell.
Overall, analysts believe that inflation will remain moderate in the coming months. They expect the inflation rate for the 12 months ended September to be 1.8%.
Effects on US Economy
Inflation in the United States has been on the rise in recent years. This has had several effects on the economy.
One effect of inflation is that it decreases the dollar’s purchasing power. As prices go up, each dollar can buy less and less. This makes it more difficult for consumers to afford goods and services. It can also lead to higher debt levels as people take out loans to cover costs.
Inflation can also have an impact on businesses. When prices go up, companies have to pay more for their inputs. This can lead to higher prices for consumers and lower profits for businesses. Inflation can also make it difficult to borrow money, as lenders want to be paid back in dollars worth more than when taking out the loan.
Overall, inflation can have some adverse effects on the economy. It can make it difficult for consumers to afford goods and services and lead to lower business profits.
