US inflation:US consumer prices rose by a weaker-than-expected 2.9% year-on-year in July, a slight slowdown from the 3.0% increase recorded in June. The subdued inflation data reinforces expectations that the Federal Reserve may implement a rate cut at its September meeting.
According to the Labor Department’s Consumer Price Index (CPI) report, monthly prices rose 0.2 percent, rebounding from a 0.1 percent drop in June and in line with economists’ forecasts.
The core CPI, which excludes volatile food and energy prices, rose 3.2% over the past year, below the 3.3% forecast. On a monthly basis, core prices rose 0.2%, compared with 0.1% in June.
This CPI release follows a lower-than-expected July producer price index (PPI) and aligns with the overall benign inflation environment. The Federal Reserve, which has kept its benchmark rate in the 5.25-5.50 percent range for more than a year, is now expected to consider a rate cut, as favorable inflation data is a key driver for such a decision, according to Fed Chair Jerome Powell.
In addition, the July payrolls report revealed slower-than-expected job growth and a rise in the unemployment rate to 4.3 percent, raising concerns about a possible slowdown in the labor market and increased risks of recession.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.