Image Source: NPR
Even if the price of gasoline decreased last month, inflation in the United States dropped at an annual rate of 8.3%.
According to the Labor Department, food, housing, and medical care costs increased even though the annual rate decreased from 8.5% in July.
A more broad relaxation of the inflationary pressures was what economists had hoped for.
Americans continue to prioritize low inflation, which puts pressure on the White House and other authorities.
According to Chris Jackson, the President is to blame for the fact that Americans have been expressing for months that inflation is their top concern. Furthermore, the approval ratings and numerous other national polls have supported this statement as being accurate.
Early this year, US President Joe Biden’s approval ratings fell around 40%, showing widespread anxiety over the rising cost of living.
The situation continues to be “a major problem” for the President and the Democratic party in general, Mr. Jackson said, despite the fact that things have begun to improve as gasoline prices have declined in recent weeks.
November will bring the next round of federal elections, which will decide who controls Congress.
It would be unprecedented for a president to gain seats in the midterm elections, according to Mr. Jackson.
Kenny Shorne is one of the many Americans who feel burdened by rising prices.
The 23-year-old, who makes a living by working in construction and photography, resides in New Jersey with his family in an effort to reduce costs. However, he also just interrupted his communications master’s program because he was worried he wouldn’t be able to pay it when other expenses increased.
Despite the fact that they have decreased in recent weeks, he claims that high gas costs are still a concern.
According to the most recent report from the Labor Department, US grocery prices increased by 11.4% in the year leading up to August, while housing costs increased by 6.2% and medical expenses by 5.6%.
Energy prices, one of the major factors in inflation, have fallen significantly over the last two months, decreasing more than 10% from July to August, according to the Labor Department, but they have still remained significantly higher than they were a year ago.
What economists say about US inflation
According to Betsey Stevenson, a professor of economics and public policy at the University of Michigan who worked in the White House under former president Barack Obama, the headline number matters most. Economists are still concerned that prices outside of energy are rising.
Read Also: Inflation rises as US stock markets plunges
She continued, saying it’s excellent news that gas prices are declining because it offers folks a little more breathing room in their budgets and improves their moods.
Although she expects inflation to remain above the US central bank’s 2% objective even at the end of next year, she stressed that the most recent data and realities do not suggest everything is fine.