US Inflation Continues to Rise

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Inflation in the United States rose further in September. Consumer prices rose 5.4 percent last month from a year earlier, according to the US government.

 

In August, this was still 5.3 percent. Inflation plays an essential role in the interest rate policy of the Federal Reserve, the umbrella organization of central banks in the US.

Every month, prices rose 0.4 percent. Inflation in the world’s largest economy is driven by a combination of factors such as more expensive fuel, higher food prices and increasing housing costs.

But supply problems at companies, high commodity prices and rising wages also cause higher inflation because companies pass on these extra costs to customers.

The Fed may be more inclined to reduce corona support measures for the economy in order to curb rising inflation. The US central bank has already indicated that it wants to start phasing out its monthly bond-buying program this year.

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