US inflation reached 8.3% and remains at 40-year highs

The year-on-year record for April was higher than expected by analysts. Joe Biden assured that it is his main priority

For iProfessional

05/11/2022 – 11:13 a.m.

US inflation reached 8.3% and remains at 40-year highs

The inflation rose sharply again in the United States Y climbed to 8.3% year-on-year in April, slightly below the record for the previous month, as reported today by the Bureau of Labor Statistics of that country. The number was just two tenths below the interannual index for March, which was 8.5%, where reached the highest record since 1981.

During the fourth month of the year, the Consumer’s price index it rose 0.3% in April and accumulated an increase of 8.3% in relation to the same month last year. Last month’s number exceeds market expectations, which expected 0.2% monthly and 8.1% year-on-year, according to a survey conducted by the Bloomberg agency. Meanwhile, the so-called “core inflation” -which excludes food and energy- rose 0.6% in April.

For its part, energy became more expensive 0.7%; the rental prices they increased 0.6%; medical services 0.5% and transport services, 3.1%. On the contrary, the price of fuel fell 6.1% in April compared to March and explains the slight drop in the annual comparison of inflation.

During March, the price of gasoline had shot up 18.3% compared to prices surveyed in February, as a result of the war between Russia and Ukraine. In that month, the prices of food, fuel and rents drove the high level of inflation.

US inflation reached 8.3% and remains at 40-year highs

US inflation reached 8.3% and remains at 40-year highs

Biden faces his own “war” against inflation

In this context, the president Joe Biden He assured that the fight against inflation is his “maximum internal priority” and the Federal Reserve (FED) applied increases in interest rates to limit the rise in prices. Last week, the Fed announced a 50-point hike in the benchmark interest rate, the highest since May 2000.

This is an increase that doubles the increase announced in March of this year – the first since December 2018 – and leaves the interest rate in a range between 0.75 and 1%, the highest point since the pandemic began. .

Joe Biden assured that his main priority is the fight against inflation.

Joe Biden assured that his main priority is the fight against inflation

“Inflation is too high and we understand the difficulties it is causing and we are moving quickly to bring it down,” Fed Chairman Jerome Powel said.

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