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Inflation in the USA – June 2022. Inflation in the USA, the highest since November 1981, comments President Joe Biden

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Inflation in the U.S. in June 2022 was 9.1 percent year on year, the U.S. Department of Labor reported. This is the largest increase since November 1981. For comparison, prices in May increased by 8.6 percent year on year. US President Joe Biden described the new figures as “unacceptably high.”

Economists expected an increase in prices in June this year. by 8.8 percent year-on-year and 1.1 percent month-on-month. Inflation in monthly terms, it increased by 1.3 percent. President of the USA Joe Biden pointed out that energy prices accounted for almost half of the monthly increase in inflation. At the same time, he noted that today’s data do not yet take into account the full impact of nearly 30-day drops in gas prices.

According to AAA (American Automobile Association) data gasoline prices in the US in June broke a record high of $ 5 a gallon. Since that peak, however, prices have dropped to $ 4.631 a gallon on Wednesday, which could ease some of the pressure on consumers.


Inflation in the US – comments

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Łukasz Zembik from Dom Maklerski TMS Brokers pointed out that in June prices rose again in all sectors compared to May. “Although energy stood out again (+7.5%), the prices of food (+1.0%) as well as other goods (+0.7%) and services (+0.7%) also increased significantly. The base reading surprised to a large extent. Consensus assumed a decline to 5.7% and the result turned out to be 5.9%. This is still less than the May figure (6%) “- noted Zembik.

Markets expect the US Federal Reserve to decide on another one an increase in interest rates – by 75 basis points. The meeting is scheduled for July 26-27. Since March, the main interest rate has increased by 150 basis points. The Federal Reserve’s inflation target is 2.0 percent.

– Data on inflation from the US were higher than expected, which supports the scenario of higher rate hikes by the Fed. In such an environment, the risk that we will break the EUR / USD parity is high, which is unfavorable for the PLN – Piotr Popławski, senior economist of ING Bank Śląski told PAP Biznes.

Impact on the zloty

According to the economist, investors are counting on higher rates in the core markets, and this puts pressure on the currencies of emerging markets, including the zloty.

– I expect that soon we can see the level of 4.9 on the EUR / PLN, and at the turn of the week it is highly probable that around 4.87 – added Piotr Popławski.

Reuters, PAP, TVN24 Biznes

Main photo source: EPA / MICHAEL REYNOLDS

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