Inflation in the US has decreased, and the increase in prices is the lowest in 3 years. Expectations are that the Federal Reserve, which plays the role of the US Central Bank, will reduce interest rates next week, BNR reported.
According to the report of the Ministry of Labor, last month consumer prices rose by only 2.5% compared to last year. This marks the weakest increase since February 2021 and the 5th consecutive annual decline.
Inflation and the cost of essential goods and services are major topics ahead of the US presidential election in November. The current administration, whose Vice President Kamala Harris is now a White House candidate, has faced criticism, including from Republican candidate Donald Trump, for making the cost of living in America higher.
Excluding volatile food and energy costs, so-called core prices rose 3.2 percent in August from 2023, according to the report. As the main reason for the drop in general inflation last month, however, analysts point to the 3rd decrease in the price of fuel. Used car prices also fell by 1 percent last month, down 10.4 percent from a year earlier.
According to Federal Reserve officials, inflation is moving toward its goal of falling to 2%, and the focus is now shifting to supporting the labor market. The expectations are that next week the interest rates will be reduced by a quarter point.