Us consumer prices rose less than expected in August, suggesting that some upward inflationary pressures are beginning to abate.
According to data released by the labor department on Tuesday, the consumer price index rose 0.3% in august from a month earlier, up 5.3% from a year earlier. Excluding volatile food and energy components, core inflation rose 0.1 per cent month-on-month and 4 per cent year-on-year.
Economists had expected overall CPI to rise 0.4 per cent month-on-month in August and 5.3 per cent year-on-year, according to the median forecast in a Bloomberg survey.
In the face of rising cost pressure caused by material shortages, transport bottlenecks and recruitment difficulties, companies have been raising the prices of consumer goods and services. While the price rally associated with the reopening of the economy is beginning to abate, supply chain tensions are likely to continue into 2022, keeping inflation high.
Consumers expect inflation to reach 4% over the next three years, the highest level since mid-2013, according to a survey released by the federal reserve bank of new York on Monday.
After the CPI data, Fed officials will discuss how and when to start scaling back asset purchases at a meeting of the Federal Open Market Committee next week. Federal Reserve Chairman Jerome Powell said last month that the Fed may start reducing its monthly bond purchases this year, but did not give a specific timetable.
The shortage of spare parts leads to an increase in production costs, which restricts production. In the past week, Toyota Motor Corp、3MCompanies have cut their car production forecasts because of a shortage of semiconductors, Nestl é.The company said it would increase price increases in China as commodity and transportation costs soar.
At the same time, Hurricane Ida halted operations at refineries and petrochemical plants in the southern United States, potentially exacerbating pandemic-related supply chain bottlenecks and price pressures.