Hot US inflation cools down

US consumers have been paying more for their goods and services. The consumer price index increased in August by 5.3 percent over a year earlier.

The government has padded personal bank accounts with thousands of dollars in stimulus, to support the economic recovery. The extra money has helped drive demand.

Gasoline prices rose year-on-year by 42.7 percent. Used car prices jumped 31.9 percent. Prices for food rose 3.7 percent. Still, the increase in the inflation rate was down slightly from a month earlier. And economists say prices may have reached their peak.

Members of the Federal Reserve Board argue high prices are tied to the quirks of the pandemic and should prove temporary. Many economists agree prices will moderate as businesses adjust and sort out kinks in the supply chain.