Now Reading: US consumer inflation eases to 3.4% in July
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US consumer inflation eases to 3.4% in July
US consumer inflation slowed to 3.4 per cent year-on-year in July, easing from 3.5 per cent in June and matching economist forecasts, government data showed. The consumer price index rose 0.1 per…
The Story in Brief
US consumer inflation slowed to 3.4 per cent year-on-year in July, easing from 3.5 per cent in June and matching economist forecasts, government data showed. The consumer price index rose 0.1 per cent from the previous month. Core CPI, excluding volatile food and energy, climbed 2.5 per cent from a year ago.
Gasoline prices dropped month-on-month to an average of $4.064 a gallon but remained 24.6 per cent higher than a year earlier, the Livemint report notes. The data follows news of surprise job losses in July. The Federal Reserve, which targets 2 per cent inflation, may hold rates steady unless unemployment or inflation worsen, thehindubusinessline.com quoted economists as saying.
The Indian Opinion
The 'inflation is tamed' narrative ignores that core CPI is still 2.5 per cent and energy prices are up sharply year-on-year from the Iran conflict. Claims that the Fed will cut rates soon are premature, the central bank watches core PCE, not just CPI. Watch the core PCE reading later this month: if it stays near 3.3 per cent, rate hikes remain on the table.
Sources (2): thehindubusinessline.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
