Federal Reserve Chair Jerome Powell said this week that the supply-chain disruptions which have been lifting inflation rates around the world will ultimately prove temporary.
“It’s very difficult to say how big the effects will be in the meantime, or how long they will last, but we do expect that we’ll get back, we’ll get through that,” Powell said Wednesday while participating in a virtual panel event.
Personal incomes, meanwhile, rose 0.2% after rising 1.1% in the prior month due to a boost from an advance disbursement of the child tax credit. Wages and salaries climbed 0.5%.
Disposable personal income, or after-tax income adjusted for inflation, decreased 0.3% in August.
The saving rate -- which has been had been elevated for months as a result of stimulus checks and enhanced unemployment benefits -- dropped to 9.4% in August from 10.1%.
--With assistance from Matthew Boesler and Reade Pickert.
This article was provided by Bloomberg News.