The cost of living in the United States continues to increase. Despite the triumphant ads of Donald Trump, who said in an interview with Fox News “there are almost no more inflation”, the data revealed by the Office of Employment Statistics (BLS) indicate otherwise. According to CNN calculations, the increase in consumer prices is even accelerating.
According to the figures published in early September, CNN reports that consumer prices increased by 0.4% in August (compared to July) and that the annual inflation rate reached 2.9%, the highest recorded since January.
The US media link this increase in two measures with the Trump administration: the implementation of substantial customs tariffs on imports and waves of arrests of immigrant workers.
The White House refutes this vision, spokeswoman Karoline Leavitt, who responded with a press release to CNN that the economic measures established by Donald Trump “will feed an economic boom.”
A remarkable increase in food
CNN reports that food is one of the main factors that have contributed to the increase in inflation last month, the price of ELS increased by 0.6%, which would represent the highest monthly increase in three years.
Fresh fruits and vegetables have increased by 2% in a month and cultivated fields rot, due to lack of labor, says Dean Baker, economist at the Center for Economic Research and Policies.
With respect to the products massively imported to the United States, they suffer an increase in prices prices. This is the case of coffee, for example, of which the largest supplier in the United States is Brazil, which has been achieved by customs tasks established by 50%. The price of coffee has increased 3.6%, unheard of since 2011.
As for tomatoes, its price increased by 4.5% in August, CNN indicates, while 90% of imports come from Mexico, which was applied 17% tax to this product.
Among the products that registered strong increases in August, CNN cites sewing machines, fabrics and associated supplies (+ 9.1%), as well as jewelry (+ 6.8%), monthly prices increase in this last category the largest from the implementation of BLS calculations in the late 1910s.
Calm before the storm?
If the effect of customs tasks remains, for the moment, relatively modest, it is among other things due to the actions composed of companies before its implementation. Additional costs have not yet been transmitted to US consumers.
Companies also expect the implementation of customs tasks to be invalidated by the Supreme Court, which must still decide on their legality.
Whatever the result of this procedure, JPMorgan economist Michael Hanson said in a note that the Trump administration would undoubtedly find other means to “maintain the current level of price rates” and anticipate an increase in consumer prices in the coming months.
Source: BFM TV
