The consumer price index rose to 5.4% in September from a year earlier, the Labor Department reported on Wednesday, above the 5.3% rise in August and matching the increases in June and July, which were the highest since 2008. Excluding volatile food and energy categories, core inflation increased 0.2% in September and 4% compared to the previous year. Prices of basic goods and services hit a three-decade high of 4.5% in June.
The rebound in inflation This year’s reflects the much higher prices for food, new and used vehicles, homes, raw materials and energy, but also for hotel rooms, clothing and furniture, among other goods and services.
The shortage of inputs and the alarmingly fruitless search for employees by companies are two fundamental factors in the price hike.
About 10 million jobs in the US remain unfilled, despite the rise in wages and stimulus measures by companies for their hiring. Even in the midst of this situation, the Biden administration insists on approving a 3.5 trillion dollar budget in sectors that only generate high expenses: health, education, health insurance and child care, among others.
The US trade deficit rose to more than $ 73 billion in September, while exports rose just 0.4%. Manufacturing production has also declined to levels of previous decades.
As for the external factor, the closure of factories in Asia and Europe slowed port operations in the US, leaving container ships anchored at sea and buyers and companies paying more for goods that do not arrive for months.
The rise in prices has also exceeded the salary increases that companies have made, an additional expense to attract employees. Average hourly wages rose 4.6% in September from a year earlier, a healthy increase, but not enough to contain inflation.