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Inflation in the United States fell to 8.5% thanks to the drop in gasoline prices

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inflation in USA it slowed down during July and stood at 8.5%, leaving behind the 9.1% recorded in June, a rate that meant its highest level since the beginning of the 1980s.

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The slight inflationary decrease, according to the Bureau of Labor Statistics (BLS), responds to the fact that consumer prices remained stable —that is, at 0%— during the month of study, mainly due to the drop in gasoline prices at 7.7%.

Likewise, the BLS adds that, as a whole, energy prices fell 4.6% in July; however, they recall that in the last 12 months they increased 32.9% with a year-on-year rise in gasoline of 44%.

In addition, despite the drop in energy prices in July, food prices continued to rise by 1.1% and accumulate a year-on-year variation of 10.9%.

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Economist Charles Lichfield, from the Atlantic Council think tank, stressed to Efe that inflation is slowing down due to the drop in gasoline prices, but not due to rate adjustments by the Federal Reserve (FED).

“This is good news as it may boost consumer confidence,” he said, though he cautioned that, with ongoing supply chain issues and tight labor markets, “inflation won’t fall as fast, and this may not protect us.” of a recession”.

Biden confirms that they are not in a recession

Along these lines, the President Joe Biden He reaffirmed that his country is not in a recession since its labor market reduced unemployment to 3.5%.

In addition, he pointed out that “a third of underlying inflation – the increase in prices without considering food or energy – was due to the high prices of automobiles due to the shortage of semiconductors” and noted that, with the microchip law approved last Tuesday, the United States will once again “lead the way.”

It is worth mentioning that the microchip law seeks to encourage the manufacture of these components in that country to reduce dependence on those made abroad, particularly in China.

Finally, Joe Biden argued that it is key to pass the law to reduce inflation —which has already received the approval of the Senad— in Congress to prevent the situation from getting worse.

Source: Larepublica

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