US inflation falls for 2nd straight month on lower gas costs

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US inflation falls for 2nd straight month on lower gas costs
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Inflation remains far higher than many Americans have ever experienced.

A customer pumps gas into his vehicle at this Madison, Mississippi, Sam's Club, on May 24, 2022.Washington — Sharply lower prices for gas and cheaper used cars slowed U.S. inflation in August for a second straight month, though many other items rose in price, indicating that inflation remains a heavy burden for American households.

Inflation remains far higher than many Americans have ever experienced and is keeping pressure on the Federal Reserve, the agency tasked with keeping prices stable. The Fed is expected to announce another big increase in its benchmark interest rate next week, which will lead to higher costs for many consumer and business loans.

Republicans have sought to make inflation a central issue in the midterm congressional elections. They blame President Joe Biden’s $1.9 trillion stimulus package passed last year for much of the increase. Many economists generally agree, though they also say that snarled supply chains, Russia’s invasion of Ukraine and widespread shortages of items like semiconductors have been key factors in the inflation surge.

General Motors has said the pandemic disruptions to overseas production of semiconductors, which have reduced auto output, have largely dissipated and that supply chain disruptions overall have improved about 80% from the worst days of the pandemic.

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