Thursday, September 19

Inflation: continues to grow notably in the US.


Inflación en Estados Unidos registra un aumento que no se veía hace más de 10 años.
Inflation in the United States registers an increase that was not seen for more than 10 years.

Photo: Joe Raedle / Getty Images

The inflationary index of the United States reached 5.4% in the month of September, placing the Consumer Price Index (CPI) with an increase of 0.4%, according to the results provided by the Bureau of Labor Statistics.

This unexpected rebound reflects a rise in prices. By annual component, energy has risen 24. 8% compared to the same period of 2020; gasoline 42%, gas 20. 6%, used cars presented an increase of 24. 4% compared to September 2020.

The increase in inflation this month, exceeded experts’ expectations by one tenth. Expected 5.3%. This figure marks the highest inflationary level in the United States in recent 13 years.

This will impact the process of monetary normalization that has not yet started in the US but has in emerging economies.

It should be noted that after the economic and closure consequences left by the Covid pandemic – 19 during the 2020, prices have not stopped rising in the US economy which in turn have been affected by delays in supply chains that have generated shortages.

With respect to this increase in inflationary figures, the Federal Reserve insists that it will be transitory, although the central bank’s expectations were slightly lower than the results of September 2021.

The Fed expected inflation to reach 4.2% instead of 3.4% that was forecast in June and they expect that for the 2022 to drop to 2.2% . This was announced in a statement in mid-September.

Therefore, the Fed assures that the pandemic still slows the economic recovery and in view of which is still underway, interest rates are expected to change by the end of 2022, according to the Committee Federal Open Market of the Fed (FOMC).

To close the 2021 inflation is expected to close at 4.4%, which represents the highest average annual inflation since 1991.

The United States is expected to close this year with inflation average of 4.4%, which would be the highest average annual inflation since 1991. pic.twitter.com/Vei4m6dXEr

– Gabriela Siller Pagaza (@GabySillerP) October 13, 2021

Nevertheless, Jerome Powell, Chairman of the Federal Reserve, has maintained a positive expectation since the middle of the year and pointed out that even so inflation increases, prices could be slowed down, and if not, the central bank is ready to take the necessary measures.

“We will use our tools to drive inflation back to 2%,” says Jerome Powell.

According to the Fed, what if it is going to stay low are the reference interest rates, between 0 and 0, 25%, while the monthly level of asset purchase will be kept at $ 120, 000 million dollars per month.

Worrying situation because this rise in prices, affects workers because it exceeds the increases Wages that rose by 4.6% in September which seemed good, however, it is not enough to maintain the inflationary rhythm.