Today: Wednesday, 1 February 2023 year

US stocks post worst decline since 2020 on inflation data

US stocks post worst decline since 2020 on inflation data

The American stock market collapsed on the basis of trading on Tuesday against the background of the publication of statistical data on inflation in the US, which turned out to be higher than expected.

The data provoked fears that the Federal Reserve (Fed) will have to raise rates more aggressively to contain consumer price growth.

The Dow Jones Industrial Average and Standard & Poor’s 500 showed their biggest drop since June 2020, and the Nasdaq Composite since March 2020.

Consumer prices (CPI index) in the US rose by 8.3% in August compared to the same month last year, according to data from the country’s Department of Labor. Thus, inflation slowed down compared to 8.5% in July, but was higher than the 8.1% expected by analysts polled by Bloomberg.

The Fed is closely monitoring data on the rate of growth in consumer prices, which are one of the important factors in making decisions regarding monetary policy. The inflation target for the Fed is 2%.

The next meeting of the Fed will take place on September 20-21.