According to official data, prices in the US increased by 3.4% in the year ending in August due to rising petrol prices driving up living expenses. The Bureau of Labour Statistics (BLS) reports that total inflation remained steady from July. It comes ahead of the Federal Reserve’s most recent interest rate decision, which is expected to be raised next week in an effort to curb the rate of price increases. A gallon of diesel set a new all-time high of more than $6 on average on Friday, underscoring the increasing pressure on US household budgets, particularly at the petrol pump.
Due to supply delays brought on by the US-Iran war, the price of petroleum has increased globally. Due to recent escalations in the conflict, the benchmark Brent crude oil price is currently above $100 per barrel. Higher oil prices can increase the cost of transportation in addition to immediately raising costs at the pump. The cost of living may increase as a result of these expenses being passed on to consumers in the form of higher prices for food and other necessities.
According to the BLS, petrol prices increased by 3.9% just last month, making up more than one-third of total inflation. Additionally, wages are not keeping up with the growing cost of living; according to separate data, actual average hourly earnings decreased by 0.3% during the previous year. Given the present inflation picture, the robust job market, and President Donald Trump’s statement that he does not believe oil prices would decline until the war with Iran finishes, which he anticipates happening after November’s elections, there are growing expectations that interest rates will be raised.
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