Last week, it was confirmed that the US Consumer Price Index (CPI) rose 8.3% year-on-year. Given that July's CPI of 8.5% was a little less than the previous month's 9.1%, a continued downtrend would have been an indicator that US recession was showing signs of recovery. August's number - in slight excess of forecasted estimates - this indicator doesn't hold water. Since the announcement, the S&P 500 dropped 4.32% over the day.

In Bank of America's Fund Manager Survey edition in July (which was discussed in an earlier article), it was estimated by the survey organizer that CPI month-on-month pivots has no means for reducing inflation rises by the end of the year.

One means of combating inflation would be for the US Federal Reserve raising rates to mop up the money supply. However, as per estimations made of CPI changes versus that in the Fed Rate, it would be around a year until CPI changes stabilize.

Now, an earlier article had indicated how data suggests that both the "working-class" population segment (i.e. predominantly those without a college degree) and the "middle-class" segment (i.e. predominantly those with a college degree) in the U.S. had been driven to consider debt as a primary spend versus consumption. This affects growth outlook in the U.S. economy that is already battling inflation woes. However, despite over a year of steady inflationary pressure, U.S. authorities have been unwilling to call the current period a recession. The primary reason for this is the U.S. job market: data indicates that unemployment is low, thus rationalizing their argument that there is no potential recession.