In April, inflation eased slightly in the United States, a figure that nourishes the hope that the worst is over, although it is hardly a relief in a context of sharp price increases that affect both the purchasing power of Americans and popularity by Joe Biden.
In the 12 months to April, inflation stood at 8.3%, and although the data is lower than the one accumulated in a year to March, it is also higher than expected, according to the Consumer Price Index (CPI) published by the Department of work.
The price rise is near the 40-year high recorded last month. Food prices had their biggest increase in 12 months since 1981 (+9.4 percent).
The fire of inflation is uncontrollable and there is little monetary policy decision makers can do to stop it, unless they massively curb growth”, estimated economist Joel Naroff.
The good news is that this is the first time in eight months that the price increase has moderated, which fuels hopes that inflation will start to slow down after the peak in March.
“Inflation may have peaked, but the decline through the end of the year will not be rapid,” said Gregory Daco, chief economist at EY-Parthenon.
unacceptable level
Since the week began, President Joe Biden has been trying to convince Americans that the White House is doing everything it can to fight inflation, which is weighing on his popularity ahead of November’s midterm elections.
“While it is comforting to see that annualized inflation moderated in April, it remains at an unacceptable level. As I said on Tuesday, inflation is challenging families across the country and bringing it down is my top economic priority,” she said in a statement.
If the monthly data is considered, the moderation of the rise in prices is more evident than in the long term, with a decrease of 0.3% compared to March, compared to an increase of 1.2% in that month compared to February.
The main reason is that gasoline prices eased a bit in April. Although this week they set a record again. Energy costs increased 30.3% in the last 12 months.