Consumer prices rose 0.1% in July, as expected, putting the annual rate at 3.4%
Core inflation also slowed to 2.5% as gasoline prices eased, easing pressure on Federal Reserve officials ahead of their September meeting.
- On Wednesday, the Labor Department's Bureau of Labor Statistics reported U.S. consumer prices rose 0.1% in July, slowing the annual inflation rate to 3.4% from 3.5% in June.
- Energy prices fell 1.5% in July, led by a 2.9% decline in gasoline costs, though year-over-year energy prices remain 14.7% higher, reflecting ongoing tensions in the Iran war.
- Excluding volatile food and energy costs, core inflation rose 0.2% monthly and 2.5% annually, while real average hourly earnings declined 0.2% in July, limiting consumer purchasing power.
- Markets pared bets on a September Federal Reserve rate hike after the report, with odds falling below 40% for action at the September 16 meeting.
- Despite cooling inflation, the rate remains above the Fed's 2% target, with structural pressures from the ongoing Iran war continuing to complicate the broader economic outlook.
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Thanks to a pause in the Middle East conflict, the consumer price index was 3.4% over a year.
influenced by a decline in energy prices and in line with analysts’ forecasts, which predicted a continuation in the fall of fuels following the war-provoking Peak in Iran. Underlying inflation, excluding volatile energy components and food, dropped to 2.5%, ... Continue reading "Year-on-year inflation in the US is falling in the face of the fall in energy prices" The post Year-on-year inflation in the US is falling in the face of the fall in en…
The increase in consumer prices moderated slightly in July and stood at 3.4 per cent year-on-year, according to the consumer price index (CPI) published by the Department of Labour on Wednesday.The data coincided with market expectations.The containment of inflation occurred in a context of falling gasoline prices, driven by the temporary cessation of hostilities in the Middle East between June and early July, before the conflict escalated again…
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