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Inflation loses strength for the first time in eight months but remains at record levels

2022-05-11T12:56:07.941Z


Prices rose three tenths in April, four times less than the previous month, but in the last year they have grown by 8.3%. "It's early to sing victory," say experts.


Inflation fell slightly in April for the first time in eight months but remains near record levels in 40 consecutive years due to the high price of gasoline, food and housing.

The federal government reported this Wednesday that consumer prices increased 8.3% in April compared to the same month a year earlier, according to data released by the Bureau of Labor Statistics.

That represents a rise of three tenths compared to March, a slowdown compared to the 1.2 points in which prices rose between February and March, when the record in 40 years was broken when inflation reached 8.5% year-on-year.

This slight drop in annual inflation (from 8.5% to 8.3%) comes on top of other signs that rising consumer prices may finally be peaking.

However,

the rate of inflation is still worrying

: it is the second highest in four decades, which is a constant burden for families, especially those with low incomes.

It is also just a modest step on a long and arduous road to return to 2% inflation, which is the Fed's target. 

A customer refuels his car at an Exxon gas station, Tuesday, May 10, 2022, in Miami. Marta Lavandier / AP

Many economists expect price increases to settle in a range of 5% to 6% by the end of the year, a historically high level, which will surely exceed increases in wages. 

"

It's too early to declare victory

," José Torres, an economist at Interactive Brokers, told The Associated Press news agency.

"It's not going to get any worse, but it's still at an uncomfortably high level," he added.

Beyond the financial pressure on households, inflation also poses a serious political problem for President Joe Biden and congressional Democrats as they head into the midterm campaign.

Biden gave a speech Tuesday in which he detailed his plan to combat price gouging, which he said is his "priority of his" right now.

Biden has said the inflation is the result of supply chain issues from the pandemic and the Russian invasion of Ukraine.

Republicans, for their part, have pointed out that Biden's $1.9 trillion pandemic financial support package last March rocked the economy by flooding it with stimulus checks, more unemployment aid payments and more child tax credits. .

Source: telemundo

All news articles on 2022-05-11

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