Fuel prices soar in the United States and push inflation to a new high. Photo: AF
The inflation in the United States, it reached 9.1% last year, the highest in four decades, according to the latest government report. The jump is mainly due to rising fuel prices, a global trend fueled by the war in Ukraine.
This was demonstrated by the report released Wednesday by the Bureau of Labor Statistics June prices increased by 1.3% compared to the previous month, which is also considered high.
This reflects how Americans continue to stretch budgets to maintain their homes, fill gas tanks, and buy food.
What prompted the impressive leap was the energy index, which increased by 7.5 percent compared to May and contributed nearly half to the overall rise in inflation, he noted The Washington Post.
The energy index includes the prices of fuel, oil, gasoline and electricity and has already risen 41.6% for the year, the largest increase in 12 months since April 1980.
Naphtha rose 11.2% in June, underlining the economic toll the Russian invasion of Ukraine has had on global energy markets, although there are hopeful signs that energy and gas prices have fallen. steadily last month, the Post noted.
A supermarket in Bethesda, Maryland. Food prices rise in the United States. Photo: AFP
the price of food
As for the food, its prices rose 10.4% in one year, the highest increase since February 1981.
The interannual rate of core inflation, which measures price increases except for energy and food, was 5.9%.
The high inflation that has been affecting the US economy for months has led the Federal Reserve to subsequent increases in interest rates that will continue, predictably, in the future, to contain the rise in prices.
The Federal Reserve (Fed) has already warned on several occasions that it will prioritize reducing inflation even though its tightening monetary policy measures could affect economic performance.
The euro, at an all-time low
While the inflation rate in the United States was known, another fact shook international markets: the The price of the euro fell below that of the dollar this Wednesday for the first time since December 2002.
In this way he broke through a symbolic threshold, weighed down by the gloomy prospects for the European economy in the face of fears that the supply of Russian gas will be suspended.
At a time of accelerating inflation in the United States, which opens the door to tight monetary policy by the Federal Reserve, the euro traded at $ 0.9998 in the early afternoon, Brussels time, a level not seen since the year it began to circulate.
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