This consolidates expectations that the Federal Reserve, the American Central Bank, will increase interest rates by 0,75 percentage points at the end of this month.
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This door to an even tighter monetary policy in the United States contributed to the euro briefly falling below the symbolic floor of one dollar today, which has not happened since December 2002.
The US consumer price index rose 1,3% in June, after rising 1% in May, according to information released this Wednesday by the Department of Labor. It is more than expected in the market. Analysts consulted by Bloomberg projected annual inflation for June of 8,8% and 1,1% for the month.
The increase in prices affects all sectors. However, it is most felt in food products, gasoline and rent.
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Food, for example, had its biggest increase since February 1981, with a rate of 10,4% in one year.
According to the United States Energy Agency (EIA), the average price of gasoline last month exceeded $5 per gallon (about 3,8 liters), an unprecedented value.
The record inflation rate increases pressure on President Joe Biden, who is already facing a drop in popularity just months before the congressional elections.
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In a statement, Biden declared that the data released is outdated, despite being unacceptable. “Today’s numbers do not reflect the full impact of almost 30 days of falling gasoline prices,” she highlighted.
Text with information from AFP © Agence France-Presse
Featured photo: Reproduction/Pixabay
