Inflation in the US, which had appeared stabilized in recent months, is on the rise again, prompting reevaluation of economic and political priorities.
Causes of Inflation Rise
In October, US inflation reached 2.6%, primarily driven by rising housing costs. According to the Department of Labor, more than half of the monthly increase comes from this sector. This highlights the significant role housing plays in American household expenses. The previous month also saw a rise of 0.2%, confirming a trend that could significantly impact household budgets.
Political Aspects of Inflation
The return of inflation into the political sphere has become especially pronounced amidst criticism from Donald Trump towards the economic policy of the Biden administration. The price surge since 2021, notably for essentials like eggs and gasoline, has become a major argument in his campaign. Trump promises to reduce inflation through protectionist measures, but according to UniCredit economists, his tariff hikes could add 1.3 percentage points to annual inflation.
Inflation and Cryptocurrencies
For the cryptocurrency market, sustained inflation in the US could bolster interest in alternative assets, often seen as hedges against monetary devaluation. However, high interest rates could impact liquidity in the crypto market, reducing investment flows into risky assets. Nevertheless, if inflation remains above the Fed's target, investors may turn to Bitcoin and other cryptocurrencies to diversify portfolios amidst a weakened dollar.
The rising inflation in the US could impact both political decisions and the daily lives of Americans. Changes in the country's monetary policy will be closely monitored for new economic and political priorities.
