Inflation on the Rise in August


The New York Times and Washington Post have both reported that inflation numbers for the month of August remaining “stubbornly high.”

The cost of groceries rose 0.7% this past month despite the falling gas prices.  According to the Times, the increase in prices “did not moderate as much as anticipated in August, unwelcome news for the Biden administration and the Federal Reserve and a sign of the extent to which fast-climbing costs continue to plague consumers.”

The consensus amongst economists was that for the months of July and August, inflation would actually decrease, but rather rose 0.1% leading to a decrease in the stock market as investors worry again over a rise in inflation.

The Times wrote “While gas prices and used car and truck costs have begun to dip, other prices are rising fast enough to fully offset those declines: Prices climbed by 0.1 percent on a headline basis over the course of the past month as prices for meals at restaurants, rents and new vehicles picked up.”

The Washington Post reported “a number of economists had been hopeful that falling energy prices in recent weeks would be enough to finally cool inflation, but government data released Tuesday showed how large price increases continue to persist on core items that make up a central part of most families’ budgets.”

In a statement released by President Biden “overall, prices have been essentially flat in our country these last two month.” He noted more work was needed in order to slow price increases especially at the grocery store where prices are up 11.4% year over year.

With the midterms looming, a rise in inflation numbers is the last thing the Democrats want before election day.


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