In September, consumer prices in the United States rose steadily as Americans paid more for food, rent, and a variety of other items, putting pressure on the Biden administration.
Following a recent spike in the cost of energy supplies, prices are expected to rise even more in the months ahead. The high inflation has been blamed on supply chain bottlenecks by Powell and the White House. Biden administration is trying to resolve strained supply chains, which are hampering economic growth. Strong demand has clogged supply chains as nations recover from the COVID-19 epidemic.
“Inflation is no longer ‘transitory,'” said Sung Won Sohn, professor of finance and economics at Loyola Marymount University in Los Angeles. He also said, “Supply-chain bottlenecks are getting worse. The logjam is unlikely to ease anytime soon despite the latest intervention by the White House.”
U.S. Consumer Price Index Rose 0.4% Last Month
After rising 0.3 percent in August, the consumer price index increased by 0.4 percent last month. Following a 0.4 percent increase the previous month, food costs increased by 0.9 percent. A hike in the cost of meat drove the greatest increase in food costs since April 2020.
Shelter prices also increased 0.4%. Following a 0.3 percent increase in August, this was the largest growth in five years. Rents are growing as city demand recovers following a pandemic-induced flight to suburbs and other low-density areas. Rents, which account for roughly a third of the CPI, are expected to be a major source of inflation in the months ahead, according to economists. More than half of the increase in the CPI was due to food and rent.
Although gasoline prices increased somewhat in September compared to August, they have now accelerated as the price of Brent crude has risen past $80 per barrel. Natural gas prices have also risen dramatically. In addition, automobile manufacturers have been compelled to reduce output due to a global semiconductor scarcity.
If inflation remains high, the Fed may be forced to raise interest rates.
