U.S. consumer prices rose by 0.3% expected last month, the smallest increase in seven months and a sign of hope that inflation pressure may cool down.
August’s earnings fell by a 0.5% increase in July and a 0.9% increase in June, the Department of Labor said on Tuesday. It has been the smallest increase since the same 0.3% increase in January.
The fall in August prices was seen as giving hope that Americans were beginning to see relief from inflation earlier this year.
Over the past 12 months, prices have risen by 5.3% a slight improvement after two months of 5.4% gain, which was the highest gain for 12 months since 2008.
Main prices, excluding food and energy costs, rose 0.1% lower in August and up 4% over the previous year.
The Republicans have hit out at Biden’s management over inflation this year but management has insisted that inflation will be temporary and that the fort will begin to return to normal levels as many supply problems are resolved.