Did US inflation go down as expected??

Inflation in the United States is approaching the Federal Reserve’s target range of 2 percent. The Fed chief is said to have kept their promise of keeping inflation in check, despite the threat of a slowdown reported last year. The economy continues to grow strong, with strong economic performance and growth even after the election of a new president.

Did US inflation go down as expected??

The current US inflation rate stands to be at the 3 percent mark, which is said to have increased ever so slightly, from the December figures pegged at 2.9 percent. If one were to compare the figures of 2022, where inflation was at 9.3 percent in June, the progress of the Fed, is said to be well within the target range of 2 percent.

The current increase in inflation is mainly driven by food products as pointed out by BLS reports. This is followed by important items such as clothing and insurance. At present the inflation is said to be predominantly driven by the shelter costs which are increasing at a higher rate. This is due to the rise in input costs, that predominantly go into the industry. One needs to note that the prices in January of this year have increased by 54 percent, compared to last year, which is alarming.

Inflation Reduction Act 2022

This act is said to have been introduced in 2022, to keep the inflation in America in check. The act is said to have benefitted the people in terms of healthcare- and made many life-saving drugs more affordable. Diabetes patients need the U.S. Many of the drugs are said to have gone in for a discounted pricing strategy which helped in saving many more lives.

In terms of manufacturing and other sectors, this act is said to be more of a benefit- as it helps many small and medium-scale industrialists to invest. Invariably it did show a spike in job opportunities and also increased production levels in manufacturing as well as the service sector.

Many investments in various sectors have increased since the Act was passed. With industries growing more steadily, this has added more than 30000 jobs and continues to grow steadily. This can also be seen in the reduction in unemployment benefits, though reports have said it has increased slightly. This is due to the recent hiring freeze from the government offices and spending cuts in many states which could potentially add a ripple effect for this to rise in the coming months. But the economy continues to grow strong despite the trends.  

While the Act is said to have done more benefits for the economy, the current president has plans for a rollback. Though the Republican party enjoys the benefits of the increased progress in economic activity in many of the states, the aspect of changing certain aspects of the law or completely doing away with the law will show major repercussions in the economy.