Inflation fell in the United States in April to 8.3%

Inflation slowed in the United States in April afterwards seven months of relentless increasea temporary signal that price increases may reach their peak and pressure still finance in American households.

Consumer prices rose 8.3% last month from 12 months ago, the Labor Department said on Wednesday. That’s down from an 8.5% year-over-year increase in March, which was then the highest rate since 1981.

Month on month, prices rose 0.3% from March to April, the rate is still high but minimum increase in eight months. Consumer prices rose 1.2% from February to March, mainly due to a sudden increase in lfuel prices caused by Russia’s invasion of Ukraine.

Nationwide, the price of a gallon of regular gasoline hit a record US $ 4.40, although that number is not adjusted for inflation.

The high price of oil is the main factor. A barrel of benchmark U.S. crude sold at about $ 100 per barrel on Tuesday. Gasoline fell to about $ 4.10 per gallon in April, after hitting $ 4.32 in March.

a political problem

Beyond the financial pressure on households, inflation is rising a serious political problem for President Joe Biden and Democratic congresses during mid -term elections.

Republicans dispute Biden’s $ 1.9 trillion financial support package in March overheated the economy by flooding it with stimulus analyzesenhanced payment of unemployment assistance and child tax credit.

On Tuesday, Biden sought to seize the initiative, declaring that Inflation is “the number one problem facing families today ”and“ my top priority national “.

Biden blamed chronic supply chain problems related to the rapid economic recovery from the pandemic, as well as Russia’s invasion of Ukraine, for igniting inflation.

He told his administration will help mitigate price increases by reducing the government budget deficit and strengthening competition in industries, such as meatpacking, which are dominated by some industry giants.

However, new turmoil abroad or other inevitable factors can always push US inflation lower. go back to the top to new heights.

If the European Union decides, for example, cut Russia’s oil, US gas prices are likely to accelerate. COVID lockdown in China is getting worse supply problems and disastrous growth in the world’s second largest economy.

Earlier signs that US inflation could rise did not last long. Price increases slowed in August and September, suggesting at the time that higher inflation may be temporary, as suggested by many economists and Federal Reserve officials.

But prices rose again in October, prompting Fed Chairman Jerome Powell to start change the policy towards higher rates.

AP