Inflation in the United States rose further in June to its highest level in nearly thirteen years. According to the US government, consumer prices increased by 5.4 percent compared to a year earlier. That is stronger than economists had expected.
The reopening of the economy is pushing inflation from the corona crisis, increasing demand for various products and goods, which is driving prices.
For example, it concerns used cars. High commodity prices, supply chain problems and rising labour costs also contribute to higher inflation as companies pass those costs on to customers.
Inflation plays an important role in the interest rate policy of the US Federal Reserve. Recently, there have been concerns in the financial markets that the high inflation could lead to the central bank phasing out support policies and rising interest rates more quickly.
High inflation in the US also means that the purchasing power of ordinary Americans is declining.