The United States experienced a slight easing in consumer inflation in July, marking the smallest 12-month increase since March 2021, according to government data released on Wednesday. This development offers a positive sign for the Federal Reserve as it considers adjusting interest rates.
The Consumer Price Index (CPI) eased to 2.9 percent in July compared to a year ago, down marginally from 3.0 percent in June, the Labor Department reported. Additionally, the core measure of inflation, which excludes volatile food and energy costs, cooled to an annual rate of 3.2 percent.
On a monthly basis, the inflation rate picked up by 0.2 percent following a decline in June, aligning with economists’ expectations. The stabilization in prices suggests that inflationary pressures may be subsiding, providing relief to consumers and businesses alike.
“Today’s report shows that we continue to make progress fighting inflation and lowering costs for American households,” President Joe Biden stated. “We have more work to do to lower costs for hardworking Americans, but we are making real progress, with wages rising faster than prices for 17 months in a row.”
The gradual slowdown in inflation could influence the Federal Reserve’s monetary policy decisions in the coming months. Analysts and investors will be closely watching upcoming economic indicators to gauge the trajectory of inflation and the broader U.S. economy.
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U.S. consumer inflation sees smallest annual rise since 2021
cgtn.com
