The price level in the USA is growing at the fastest pace in the last 30 years

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The inflation rate in the United States is accelerating further. Consumer prices in the US have been rising the fastest since 1990. The record rise in prices is mainly due to rising fuel and food prices.

The US consumer price index rose 0.9 percent in October from September. In September, its growth was half a percentage point lower. In year-on-year terms, consumer prices jumped 6.2 percent, the highest since November 1990. At that time, the US inflation rate reached 5.4 percent.

Core inflation, ie adjusted for the effect of administrative price and tax adjustments, stood at 4.6 percent in October, the highest since August 1991. Current data on the development of the US price level negatively surprised analysts. According to Reuters, they expected a month-on-month rise in prices in the US of 0.6 percent.

This confirms the assumptions of some economists that inflation will be far from declining. Nevertheless, the Federal Reserve (US Federal Reserve) reiterated last week that it believes the current high inflation is only temporary and that the pace of price growth will begin to slow. Therefore, it is cautious about tightening monetary policy.


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