Prices rise sharply again in the US

TITLE: Consumer prices rise sharply again in the US

SLUG: US INFLATION

DATE: JULY 13, 2022

AUTHOR: IACOPO LUZI

LOCATION: WASHINGTON DC

VIDEO SOURCE: REUTERS, ABC, VOA, AP

DURATION: 02:21

((ENTER))

In the United States, consumer prices rose 9.1 percent from a year earlier last month, the fastest pace since 1981. The government is trying to contain this inflation, while fears of a recession grow. Iacopo Luzi has the report.

((PKG))

((SOT: Jerome Powell, Director of the Federal Reserve))

((ENG: ““We now understand better how little we understand about inflation”))

ESP: “Now we understand better how little we understand about inflation.”

((STORYTELLER))

In the United States, consumer prices last month rose 9.1 percent from a year earlier, the fastest pace since 1981. Inflation in the United States remains a yoke that affects everyone and is due to the high price of gasoline and food, in addition to the increase in rents that are impacting people’s daily lives.

However, the inflation rate which includes food and gasoline it could slow down in July because prices at gas stations have moderated in recent weeks.

According to economist Isaac Cohen, the index was calculated looking back, while the US Central Bank could cool the economy again at the end of July.

((SOT: Isaac Coher, Economist))

ESP: “The measures taken by the Central Bank had not had any effect. Instead, another Central Bank meeting is coming up and the rate is going to go up again, probably to 0.75%. Because, in addition, there are certain signs that the economy is still strong.”

((STORYTELLER))

Sure, the cost of gasoline is crucial in the economy now, but it is fluctuating and could rise again, particularly due to the war in Ukraine.

For this reason, faced with this scenario, the International Monetary Fund warned that avoiding a recession in the United States will be “increasingly challenging”, and reduced its growth forecast for the country to 2.3% this year.

((SOT: Isaac Cohen, Economist))

ENG: It will be very difficult to avoid the recession if we don’t control the price of fuel. I think that is the essential factor. If one factor had to be identified among all of them, the essential one is the price of gasoline.

((STORYTELLER))

At the same time, with a war on the eurozone border, an uncertain energy supply from Russia, and a growing risk of recession, pressures on the euro finally grew so strong that it fell to parity with the US dollar on Wednesday, a one-on-one relationship not seen since 2002.

However, economists believe, for the United States this is good news because it makes the dollar more competitive in imports with Europe and around the world.

Iacopo Luzi, Voice of America, Washington.