News Update


Higher fuel costs continue to drive up consumer prices in the United States.

Inflation was 3.7% in the 12 months to September, which was the same rate as in August.

The Federal Reserve of the United States is contemplating whether it will need to hike interest rates again to stabilize price growth.

While inflation has decreased dramatically since last year, it remains above the 2% objective.

According to analysts, the new statistics from the US Labor Department provided little decisive signals on the next action by the US Federal Reserve.

“The bigger picture is that the trend is still quite encouraging, but the fight continues,” said Olu Sonola, Fitch Ratings’ head of US economics.

While the annual figure remained stable, inflation fell from 0.6% to 0.4% between August and September.

The rise in home prices was the most significant contributor to the rise in the Consumer Price Index, which is the basket of goods and services used by the Labor Department to measure price increases.

Petrol prices have also continued to rise, but at a slower pace than previously.

However, used car and garment costs declined month on month, while grocery price increases halted.

The Federal Reserve has already boosted borrowing prices significantly, with its key interest rate currently exceeding 5.25%, up from near-zero in March 2022.

The increase has impacted the public in a variety of ways, including dramatically increased mortgage rates and more expensive business loans.

The Fed hopes that by raising interest rates, it will encourage saving and restrict company development and other activities, thus cooling the economy and easing price pressures.

However, while inflation has slowed from more than 9% last year, it remains more than the Fed’s target.

Officials have warned that rates will remain quite high for some time, in part because job growth and consumption have outperformed expectations.

However, they have grown increasingly optimistic that they would be able to contain inflation without causing a major downturn.


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