US inflation eased in August, Department of Labor reports | Voice of America
WASHINGTON – The rise in consumer prices in the United States eased in August, the Labor Department reported on Tuesday, a sign that inflationary pressures may begin to ease as the country’s economy continues to recover from the effects of the coronavirus pandemic.
The data showed that prices rose three-tenths of a percent in August from July, breaking an eight-month streak of rising or stable inflation for consumers, whose spending accounts for 70% of the U.S. economy, the largest in the world.
Over the past year, US prices rose 5.3%, a slight improvement from previous annualized gains of 5.4% in June and July, which had been the largest 12-month increases since 2008.
Even though the United States has been seeing mostly month-over-month price increases this year, White House economics officials and policymakers at the Federal Reserve, the nation’s central bank, have asserted that inflation will slow as l The economy was improving, especially as the supply chain of consumer products improved to meet the demands of buyers.
Even with the easing of price hikes in August, the inflation rate still has a way to go before reaching the Fed’s traditional 2% annual target.
The surge in Delta variant cases of the coronavirus – 150,000 new cases per day in recent weeks – has created new uncertainty over the economic fortunes of the United States and the willingness of consumers to spend, whether on home renovations , a new or used car or vacation trips.
In a separate report, the US Census Bureau reported on Tuesday that the median household income in the United States in 2020 was $ 67,500, down 2.9% from the previous year.
Only 235,000 new jobs were created in the United States in August, compared to more than 2 million combined in June and July. It’s a drop that President Joe Biden blamed on the spread of the Delta variant.