The inflationary jump in the US has been higher than expected by the markets. The 9.1% reported on Wednesday is a worrying number that has even exceeded the 8.8% forecast by analysts. This confirms that the Fed’s aggressive rate hike policy will continue.
According to data released Wednesday by the Bureau of Labor Statistics (BLS), inflation continues to be the highest in more than forty years.
The increase in consumer prices was 1.3%. This rise was supported by the increase in food prices, especially gasoline, which rose 11.2%. This increase related to energy prices gave a 7.5% rise and was the main factor in almost half of the monthly increase.
Energy prices continue to be a headache for consumers. In the last year they have risen 41.6%, which represents the highest increase since 1980. Food prices are up 10.4% year-on-year.
The rate that measures the general increase in prices (called the underlying inflation rate) was 5.9%. Today’s data confirm that the Fed’s aggressive rate hike policy will continue in the future. The containment of price increases through rate hikes is causing international concern, fueling fears of an imminent economic recession.