17.6 C
Tuesday, October 3, 2023
HomeUSBreak: inflation reaches 3.2%

Break: inflation reaches 3.2%


Break: inflation reaches 3.2%

Inflation in the United States reached an annual rate of 3.2% – increasing slightly in July compared to June.

The latest consumer price index released Thursday by the Bureau of Labor Statistics showed that monthly price increases remained modest.

Inflation rose 0.2% in July – the same rate as in June – which could possibly deter the Federal Reserve from raising interest rates again in September.

This monthly increase was in line with forecasts, while the annual rate was slightly lower than forecast at 3.3%.

The annual inflation rate of 3.2% is a sharp drop from the peak of 9.1% recorded last June, but it remains considerably higher than the Federal Reserve’s target rate of 2%.

After pausing interest rate hikes for the first time in 15 months in June, the central bank took the unanimous decision to raise rates again in July, pushing benchmark borrowing costs to the highest level since more than two decades.

In a long-awaited move, the Fed raised rates to between 5.25 and 5.5% – a range not seen since the start of 2001 – as part of its aggressive push to rein in inflation.

According to the Bureau of Labor Statistics, the rise in inflation in July was primarily due to housing costs, which include rent, accounting for 90% of the monthly increase.

This is breaking news. More soon.

The author of what'snew2day.com is dedicated to keeping you up-to-date on the latest news and information.

Latest stories