Home » Business » Official inflation in the US before April jumped to 4.2% – a record since 2008 – 2024-04-25 15:10:29

Official inflation in the US before April jumped to 4.2% – a record since 2008 – 2024-04-25 15:10:29

/ world today news/ Consumer prices in the US rose by 4.2% in April compared to the same month last year, according to data from the Ministry of Labor of the country.

Thus, inflation accelerated from 2.6% in March and reached its highest rate in more than twelve years – since September 2008.

Analysts on average had forecast growth of 3.6%.

Signs of rising inflation in the US weighed on the market this week, reports Dow Jones. Investors fear that to curb inflation, the Federal Reserve may raise short-term interest rates earlier than planned. According to a number of representatives of the US central bank, however, the economy still needs support from low interest rates.

Federal Reserve officials have repeatedly warned that any uptick in inflation this year will be temporary. However, financial market traders are not so sure.

According to Bank of America, the use of the word “inflation” is back in fashion and its use has increased by 800% since last year. Even last week’s payrolls report, which showed the U.S. added only about a quarter of the jobs economists expected in April, was seen as a sign that companies will need to raise wages to attract more unemployed people to the workforce. .

“Inflation risk is what we want to see here,” Savita Subramanian, head of U.S. equities and quantitative strategy at Bank of America, said on Bloomberg Television. “I don’t know if it will be temporary,” she added.

Even the famous hawks at the Federal Reserve have stepped in in recent weeks to say that inflation is picking up. The situation is unlikely to get out of hand, despite unprecedented government spending in response to the coronavirus pandemic. Federal Reserve Chairman Jerome Powell, Biden’s chief of staff and economic advisers have both said the inflation currently showing up in certain areas of the economy is “transitional”.

This description raises an important question: How long is this “transitional”? The answer is probably unknown right now, but recent recessions provide some clues.

Translation: V. Sergeev

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