New Delhi: Inflation in July fell to a three-year low in the United States, data showed on Wednesday, setting the stage for a likely rate cut by the Federal Reserve next month. Data from the U.S. Bureau of Labor Statistics showed that the annual inflation rate in July hit 2.9%, dipping below 3% for the first time since March 2021.
Inflation soared to a 40-year high of 8.6% in June 2022, triggering a series of interest rate hikes by the U.S. Federal Reserve to cut spending and cool the economy. The Fed is expected to announce a cut next month amid signs of recovery.
“We have much work to do to lower costs for hard-working Americans, but we are making real progress, with wages rising faster than prices for 17 straight months,” said US President Joe Biden, adding: “Prices are still too high. Big corporations are making record profits and they are not doing enough to lower prices.
That’s why we’re taking on Big Pharma to lower prescription drug prices. We’re cutting red tape to build more housing, while also fighting corporate landlords who unfairly raise rents. And we’re fighting price gouging and junk fares to lower everyday costs, from food to air travel.
High prices have become a key issue in the 2024 presidential election, and former US President Donald Trump, the Republican presidential candidate, has blamed the administration of Joe Biden and Kamala Harris for this. He has made “ending inflation” one of his main promises for his re-election campaign.
Democratic presidential candidate Kamala Harris has acknowledged that prices remain high and, like US President Joe Biden, has tried to shift some of the blame to big business. But she is expected to lay out her arguments in more detail when she announces her economic policy sometime this week.
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