US Inflation Rose in August, Marking a Notable Increase
Data released Tuesday by the Bureau of Labor Statistics revealed a rise in the general inflation rate within the United States. Prices increased by 2.9 percent compared to the same period last year, a significant uptick from the 2.7 percent increase recorded in July. Month-over-month, prices saw a rise of 0.4 percent.
The index excluding food and energy, often referred to as core inflation, remained steady at 3.1 percent, mirroring the figure observed in July.
Energy prices edged up by 0.2 percent year-over-year, reversing a decrease of 1.6 percent registered in the previous month. The cost of food increased by 3.2 percent within the year, compared to 2.9 percent in July.
Investors closely monitor US inflation figures, as declining inflation rates can influence the Federal Reserve’s decisions regarding interest rates. Elevated interest rates are generally considered unfavorable for both the stock market and the real estate sector, as they reduce the appeal of these avenues compared to bank savings. Many experts attribute rising prices, in part, to the trade policies enacted by the administration of US President Donald Trump.
