The Federal Reserve raised interest rates from 5.25% to 5.5% at its July meeting, marking 11 rate increases in the last year. The thinking
The Biden administration may have been hoping that inflation would continue its fall from a 2022 high. But the Consumer Price Index jumped half a percentage point from 3.2% in July to 3.7% in August.
While gas prices accounted for about half of the increase, there were worrying signs in other sectors of the economy as well, signaling the Federal Reserve that, despite the steepest rise in interest rates since the early 1980s, inflation has yet to be beaten back.
Airline fares jumped nearly 5% in August, driven by higher jet fuel prices. And the 10.6% rise in gas prices was the result of OPEC+ maintaining its cuts in production.
Joe Biden tried to adorn the pig with a deep shade of red lipstick.
“Today’s report provides more evidence that core inflation is trending down toward pre-pandemic levels at a time when employment remains strong,” he said in a statement.
“I know last month’s increase in gas prices put a strain on family budgets.
