On Wednesday, US Labour Department data had unfurled that US Consumer Prices, a crucial indicator to US inflation, rose robustly in September as Americans’ expenses on foods alongside rents among others had markedly spurred up, illustrating further strains for a grief-sickened Biden Administration which has become a slanderous subject to a cataclysmic credit default by October 19.
On top of that, with US debt-ceiling debates beginning to question the US economy’s safe-haven status, US consumers prices index would likely to shoot up further over coming months as a latest leg of blistering upsurge in energy prices would put pressure on Biden Administration to resolve a wide-spread supply chain disruptions which are expected to hinder the nation’s economic growth on third quarter.
Aside from that, latest increase in US Consumer Prices Index would test the temper of US Fed Chair Jerome Powell, whose months-long remarks that the latest round of blistering upsurge in inflation indicators would be ‘transitory,’ turned out to be a mere consolation.
Nonetheless, both Powell alongside US Treasury’s Yellen had laid the blames on a telescoped supply chain behind a sky-scrapping inflation reading over recent months.
US Consumer Prices Index rises robustly in September
According to US Government data released earlier in the day, the US Consumer Prices Index, an average change in prices on a weighted basis that the Americans are paying off for goods and services, rose 0.4 per cent in September following a rise of 0.3 per cent in August, while foods’ expenses climbed 0.9 per cent, the largest monthly increase in foods’ prices since April 2020.
Meanwhile, adding that a latest upsurge in US inflation has been no longer ‘transitory,’ a professor or finance and economics at Loyola Marymount University in Los Angeles, Sung Won Sohn said, “Supply-chain bottlenecks are getting worse.
The logjam is unlikely to ease anytime soon despite the latest intervention by the White House”.