Last month, inflation in the United States rose at an annual rate of 8.3%, continuing to be high despite lower gasoline prices.
According to the Labor Department, the cost of food, housing, and medical care increased despite a decline in the annual rate from 8.5% in July.
According to economists, the pressures of inflation were expected to be lessened more broadly.
Americans continue to prioritize low inflation, which puts pressure on the White House and other decision-makers.
According to Chris Jackson, Americans have been expressing their concern over inflation as a top priority for some months, and the President is to blame. Moreover, the approval ratings and numerous other national polls have supported this rhetoric.
Early this year, US President Joe Biden’s approval ratings fell below 40%, showing widespread anxiety over the rising cost of living.
The situation continues to be “a major challenge” for the President and the Democratic party as a whole, Mr. Jackson said, despite the fact that things have begun to improve as gasoline prices have declined in recent weeks.
In November, the next round of federal elections will take place, which will determine who controls Congress.
According to Mr. Jackson, it would be unprecedented for a president with Mr. Biden’s support ratings to gain seats in the midterm elections.
Kenny Shorne is one of many Americans who feel burdened by rising prices.
The 23-year-old, who supports himself through construction and photography work, resides in New Jersey with his family in an effort to reduce costs. However, he also just interrupted his communications master’s program because he was worried he wouldn’t be able to pay it as other expenses rose.
Despite the fact that they have decreased in recent weeks, he claims that high gasoline costs are still a concern.
According to the most recent Labor Department report, the US food cost increased by 11.4% in the year leading up to August, while housing costs increased by 6.2% and medical expenses by 5.6%.
Energy prices, one of the main causes of inflation, have fallen significantly over the last two months, decreasing more than 10% from July to August, according to the Labor Department, but they have nevertheless remained significantly higher than they were a year ago.
Economists weigh in on US inflation
According to Betsey Stevenson, a professor of economics and public policy at the University of Michigan who worked in the White House under former president Barack Obama, the headline number matters most. Economists are still concerned that prices other than energy are rising.
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She continued, saying it’s excellent news that gas prices are declining because it provides folks a little bit more room in their budgets and improves their moods.
Although she expects inflation to remain above the US central bank’s 2% objective even at the end of next year, she stressed that the most recent data and realities do not always suggest everything is fine.
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