July Inflation: At the beginning of the year, inflation was increasing significantly in the US but in July the inflation went down.
On Wednesday, the labor department reported that the consumer price index also increased by 2.9% against the same period last year.
Excluding volatile food and energy things, core prices have hiked by 3.2% in the previous 12 months and 0.2% in June.
Kathy Bostjancic who is the chief economist said that the data given is “a very encouraging core reading and should give the Fed lots of confidence to start the easing process.”
Also Read: Rachael Lillis Died at the Age of 46: Pokemon Voice Actor Lost Her Battle To Cancer
The report which was released on Wednesday stated that core prices surged by 0.2% or less every month for three consecutive months. Since 2021, it is the first time that the total CPI inflation was below 3%.
In the first three months of the year, the monthly core price inflation stood at 0.4% thus stating that the Feb couldn’t cut the rates as per the investors expectations.
Because the cost of housing rose significantly than it did in June, the report wasn’t absolutely perfect. Despite there being high gains in other categories, the market didn’t respond to it.
Also Read: Trump-Musk Interview: X ‘Space’ Crashes Just After the Interview Started
Major stock indexes were mixed, and Treasury yields fluctuated between small gains and losses. Several investors and economists are concerned with the risk of a recession despite keeping track of inflation for a long time.
Wednesday’s report further showed that the unemployment rate went up by 4.3%, against 4.1% in June and 3.7% at the beginning of this year.
However, people are now worried about the unexpected hike in the unemployment rate and about a possible downward economic spiral, in which a rising unemployment rate might affect customer demand leading to more layoffs.
Economist still expects that the US can avoid the recession in the near future.
Also Read: US Approves $20bn Arms Sale to Israel Amid Ongoing Destruction in Gaza
