The US Consumer Price Index rose to 3.7% in August, representing the fifth consecutive month of inflation above 3.0%. This reflects the continued impact of the Federal Reserve’s fight to tame stubbornly high prices.
Despite efforts from the Fed, prices continue to be pushed further as the US economic recovery progresses since the COVID-19 pandemic. Food prices are rising faster than any other category, such as meats and poultry which increased 5.5% in August. The cost of gasoline rose 6.0% month-over-month, the biggest jump since last June. Meanwhile, airfares, hotel accommodation and car rentals have also seen an increase due to travel demand.
The Fed is determined to bring inflation below 2.0%, so it might need to take further action in order to contain inflation. It will be interesting to see the steps that are taken by the Federal Open Market Committee in order to bring inflation down in the future.