Record inflation continues to cause high consumer goods prices and increases in interest rates.
The release of the US government’s inflation report which saw higher than expected numbers led to the Dow Jones Industrial Average dropping 900 point on Tuesday.
Other indexes followed suit, including the Nasdaq which dropped by over 450 points or 3.9 percent, according to the New York Post.
The markets fell after the consumer price index (CPI) report showed nearly all consumer goods had gone up in price during the last period, excluding gasoline.
Prices of goods surged 8.3 percent in August compared to 2021, down slightly from 8.5 percent in July but higher than expected.
The CPI food index increased 11.4 percent in August, the largest increase since May 1979.
President Joe Biden said in a statement on Tuesday that the inflation report for August “shows more progress in bringing global inflation down in the U.S. economy. Overall, prices have been essentially flat in our country these last two months: that is welcome news for American families, with more work still to do.”
Biden added: “[It] will take more time and resolve to bring inflation down, which is why we passed the Inflation Reduction Act to lower the cost of healthcare, prescription drugs and energy.”