U.S. inflation slowed for a second straight month on a sharp fall in gas prices. Excluding energy, most other items got more expensive in August, indicating that inflation remains a heavy burden for American households.
U.S. inflation slowed for a second straight month on a sharp fall in gas prices, yet excluding energy most other items got more expensive in August, a sign that inflation remains a heavy burden for American households.
Inflation remains far higher than many Americans have ever experienced and is keeping pressure on the Fed. The central bank is expected to announce another big increase in its benchmark interest rate next week, which will lead to higher costs for many consumer and business loans. Republicans have sought to make inflation a central issue in the midterm congressional elections. They blame President Joe Biden’s $1.9 trillion stimulus package passed last year for much of the increase. Many economists generally agree, though they also say that snarled supply chains, Russia’s invasion of Ukraine and widespread shortages of items like semiconductors have been key factors in the inflation surge.
General Motors has said the pandemic disruptions to overseas production of semiconductors, which have reduced auto output, have significantly dissipated and that supply chain disruptions overall have improved about 80% from the worst days of the pandemic.