Inflation is relentless and is reaching its highest levels in 40 years in the United States.

The inflation From United State It jumped in May to its highest rate in the past 40 years, 8.6%, a new rise in consumer prices that was driven above all by the sharp increase in energy prices.

The monthly increase in consumer prices between March and April was 1%.

The data released Friday by the US Bureau of Labor Statistics is higher than analysts had expected and the April truce ends, when the rate posted its first decline in seven months.

This new escalation makes the new expected rise of half a point already in interest rates from before Federal Reserve (feed it), which meets next week.

The historical rise in consumer prices has been driven above all by rising energy prices and also, albeit to a lesser extent, by rising housing and food prices.

Energy prices (gasoline, crude oil, electricity and gas) have risen 34.6% in the past twelve months, driven by a crude oil price of 106.7%, the largest annual increase recorded by this statistic since production began. In 1935.

Compared to April, energy prices rose by 3.9%, in contrast to the 2.7% decline recorded at the time compared to March.

For their part, food prices increased by 10.1% in one year, especially those related to purchases in the supermarket, which increased by 11.9%, while food prices in restaurants increased by 4, 7%.

America headache

Both numbers are slightly above the increase recorded last month, contributing to inflation growth in May at the fastest pace the country has recorded in the past 40 years.

If food and fuel prices, which are the most volatile, are excluded, core inflation was 6% year over year.

The home price, one of the most heavily weighted in core inflation, rose 5.5% in one year, its monthly increase of 0.6%.

Price hikes have become the main headache for US President Joe Biden, who since last month has reiterated that controlling price hikes is his “main economic priority”.

The president repeated that idea last Friday in a speech in the Port of Los Angeles, in which he once again blamed Russian President Vladimir Putin and his decision to invade Ukraine for euphoria. Inflation in the United Statesalthough the index was already on an upward trajectory before the war.

“I understand Americans are worried. I grew up myself in a house where the price of gasoline went up and that’s what we talked about at the table. It made a difference in food prices that went up,” he said. President, remembers his humble origins in Scranton, Pennsylvania.

The increase in prices is partly due to the strength of the American labor market, as companies are forced to raise wages to attract workers, thus increasing the purchasing power of consumers and this allows the prices of goods to rise as well. Food, energy and rents, among other things.

The unemployment rate reached 3.6% in May, practically full employment levels.

However, there are signs that the US labor market is moderating, with May and April data showing less visible growth than in previous months.

All this amid fears that the US economy will enter a recession due to the hike in interest rates that the Federal Reserve has agreed to try to curb inflation.

The Fed is expected to keep raising interest rates, which are currently in the 0.75% and 1% range, at least as long as job creation remains strong.

According to the minutes of the last meeting, feed it It plans to agree to two half-point increases at its next two meetings.

(EFE)

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