US Consumer Prices Index, which tracks down the changes in average price level of consumer goods and services purchased by the Americans, had stepped up 0.4 per cent in August as the used car prices in the United States had surged by the most in 51 years last month, suggesting a steep lag in supply chain as almost all of the US car manufacturers’ deliveries had been hit hard due to the pandemic-led forced business closures.
Nonetheless, despite a modest gain in the purchases of consumer goods and services in August, analysts fretted that the consumer prices had been slowing down following large gains of 0.6 per cent in both June and July, however, a curb in oil futures’ prices had also led to the slowdown in US consumer prices.
US consumer prices rise as used car prices jump 5.4% in August
Meanwhile, as the US Labour Department had reported an unprecedented rise in used car prices which in effect had led to a decent gain in consumer prices index last month, analysts were anticipating further rises over the coming months in light of a deepening supply crunch.
On tops of that, apart from the US used car prices’ largest monthly rise since March 1969, other big gains in US consumer prices had been witnessed in household spending that rose as much as 0.9 per cent last month, remarking its largest monthly rise since the February of 1991, while prices of home appliances alongside furniture and bedding had been met with an intransigent spike amid an inflating work-from-home employees across the world’s No.
1 economy. Nevertheless, despite a soaring US consumer prices that would likely to contribute on to an uptick in inflation readings, overall inflation remained tepid and had been up by 1.3 per cent including energy and food prices.
Meanwhile, referring to the possibilities of a downbeat inflation in a longer-term outlook, a chief US economist at High Frequency Economics, Rubeela Farooqi said followed by the release of US consumer prices for August, “Consumer inflation has been accelerating as economic activity has resumed and these readings bear watching for further acceleration even though the trend remains subdued against a backdrop of weak demand and excess capacity. ”