Lower-Than-Projected Inflation Figures Inspire Hope For Recovery

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The riyal's value has plummeted to around 1,000 to the dollar in areas controlled by Yemen's government
The riyal's value has plummeted to around 1,000 to the dollar in areas controlled by Yemen's government

While consumers were hit with more price increases in August, inflation fell below expectations and offered hope for the ongoing economic recovery, according to the latest Consumer Prices Index report from the Bureau of Labor.

Inflation rose 5.3% over the last 12 months and 0.3% from July, the report said. Economists were anticipating a 5.4% annual increase and 0.4% rise for the month, according to a Dow Jones survey, as reported by CNBC.

While inflation grew 0.3% for the month, that figure falls to 0.1% when energy and food are removed from the equation. For the last 12 months, energy prices have risen 25%, and food prices have increased 3.7%.

Gasoline prices saw a robust rise of 2.8%, with energy increasing 2% in total for the month. Food costs also grew 0.4%, with both prices for food at home and food away from home seeing increases of 0.4%.

Major food inflation was seen in nonalcoholic beverages, up 1%, meats, poultry, fish, and eggs, up 0.7%, beef, up 1.7%, and other food at home up 0.6%. Fruits and vegetables were also up 0.2%, after a decline in July. Dairy product prices fell 1%.

For the last 12 months, meats, poultry, fish, and egg prices have increased a total of 8%, while beef prices are up 12.2%.

Inflation on household furnishings and operations has grown 1.3%, and shelter prices have jumped 0.2% as well for August.

Also seeing price increases during the month was new vehicles (1.2%), recreation (0.5%), and medical care (0.2%).

A decline in prices did occur in August in the segments of consumer airline fares, uses cars and trucks, and motor vehicle insurance.


The riyal's value has plummeted to around 1,000 to the dollar in areas controlled by Yemen's government

Photo: AFP / MOHAMMED HUWAIS

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