Stock markets plummet after inflation data in the United States

First modification: 09/14/2022 – 04:16

Eyes on the Fed. The fall in the price of gasoline was not enough to offset the increases in other concepts, such as food, whose prices continue to rise, despite the drop in annual inflation to 8.3% in August .

Data published by the Bureau of Labor Statistics, BLS, shows that food prices rose seven tenths, to 13.5% year-on-year, while eating out became more expensive 0.9%, 8% year-on-year. .

For the general data, it is the second continuous drop in the year-on-year rate of inflation, which in June reached its highest figure in forty years, 9.1%, and in July it fell to 8.5%.

The slight drop in inflation gave a respite to the US economy, which at the end of July entered what experts consider a technical recession by chaining two quarters of falls in the Gross Domestic Product, GDP.

A concept that for the White House and the Federal Reserve does not apply due to the strength of the labor market in that country.

“Overall, prices have been essentially flat in our country these past two months — that’s good news for American families, though there’s still a lot of work to be done,” Biden said in a statement.

According to him, “it will take more time and determination to reduce inflation”, and he recalled his recently approved Inflation Reduction Law, with which he plans to reduce prices in the long term, investing in the green energy industry in the country and in reducing polluting gas emissions.

All three major US stock indices ended in negative territory after four straight sessions of gains, posting their biggest one-day percentage decline in more than two years.

Rising risk sentiment dragged down the tech sector, with Apple, Microsoft and Amazon.com weighing the most on the latter. The Dow Jones Industrial Average fell -3.94%, the S&P-500 lost -4.32% and the Nasdaq Composite fell to -5.16%.

With EFE and Reuters