By Lucia Mutikani
WASHINGTON, Oct 13 (Reuters) – Consumer prices in the United States made a solid advance in September as people paid more for food, rental homes and a variety of other goods, putting pressure on the government to quickly solve supply chain problems that obstruct economic growth.
With prices likely to rise further in the coming months amid the recent spike in energy costs, the Labor Department report released Wednesday could put Federal Reserve Chairman Jerome Powell’s intent to the test. to continue considering high inflation as a transitory issue.
Powell and the White House have blamed supply chain bottlenecks for high inflation.
Supply chains have been hampered by robust demand as economies emerge from the COVID-19 pandemic. The coronavirus has caused a global shortage of workers who are essential to produce raw materials and move products from factories to consumers.
“Today’s (Wednesday) number, with food price inflation and housing inflation on the rise, suggests increasing pressure on consumers,” said Seema Shah, chief strategist at Principal Global Investors.
“In addition, it must be taken into account that the recent increase in oil prices has not yet been reflected in the figures, that is still to come, while it is likely that the new rise in car prices will also raise the rate of inflation in the coming months. “
The consumer price index grew 0.4% last month after rising 0.3% in August.
Food prices rose 0.9% after increasing 0.4% in the previous month. Equivalent rent for basic necessities, which is what an owner would receive for renting a house, increased 0.4% after gaining 0.3% in August.
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