The Core Price Index, which excludes more volatile goods such as the cost of food or energy also pointed to an unusually high variation of 4.5 %. The price of food and energy, which accumulated a monthly increase of 0.9 %, has been felt in July's measurements
Although in the past Fed Chairman Jerome Powell denied that inflation was out of control, the balance of 4.2 % inflation a year after the pandemic began shows that the U.S. economy is overheating faster than central bank bureaucrats had thought
"The economy is a long way from our employment and inflation goals," Jerome Powell, chairman of the Federal Reserve, said in testimony to the Senate Committee on Banking, a statement he has repeated in recent weeks. Powell made clear to the Senate of his intention to keep interest rates near 0 and a large asset purchase by the Federal Reserve until "substantial progress" has been made.