Consumer prices in the United States have accelerated in the month of August in the middle of the jump of the price of gasoline and rental accommodations. These two are signs that confirm inflammation which would result in a further tightening of the monetary policy in this year from the Federal Reserve. On the other hand, the data on Thursday showed that there is just an unexpected drop in the number of applications of Americans filing for unemployment benefits last week. It was not forgotten that the data was impacted by hurricanes Harvey and Irma but in spite of that the labor market remained healthy with the increasing reports of shortages of workers in some of the industries.
The labor department stated that the consumer price index has risen by 0.4 percent from the previous month after increasing by 0.1 percent in the month of July. This particular gain in the month of August was the highest in the last seven months which has risen the year on year increase in the consumer price index to 1.9 percent from 1.7 percent in the month of July. The economists had previously forecasted that the consumer price index will rise about 0.3 percent in the month of August and will climb 1.8 percent year on year. The Labor department has made it clear that the killer hurricane, Harvey had very little effect on the rates of survey response in the month of August.
The prices of gasoline have risen by 6.3 percent which is the biggest rise since January after remaining constant in the month of July. A further increase in prices is very likely in the month of September as a result of the effect of hurricane Harvey closing the refineries. The officials of the labor department said that it was extremely difficult to confirm that whether the hurricane that slammed Texas at the end of August impacted the price of gasoline in the last month.
The food and energy components which were extremely volatile in increasing consumer prices increased by 0.2 percent in the month of August. This was the consecutive increase for four months with a constant increase of 0.1 percent every month. In the last twelve months, through August the core consumer price index has risen by 1.7 percent. The year on year core consumer price index increased by the same margin for four consecutive months.