Thursday, September 28, 2023

US inflation breaks its losing streak and rises two tenths in July to 3.2%

After twelve consecutive months of falls, the rate of inflation in the United States it rose two tenths in July and stood at 3.2%, at a time marked by the close monitoring of prices by the Federal Reserve, which raised interest rates again at its last meeting.

In monthly terms, the consumer prices they rose two tenths compared to the month of June, the Bureau of Labor Statistics (BLS) indicated this Thursday.

The rise of two tenths in year-on-year terms It is known after the indicator stood at 3% in June, its lowest level since before the pandemic.

The annual rate of the Underlying inflationwhich measures the rise in prices without counting energy or food and is one of the indicators the Fed pays most attention to when making its decisions, fell slightly, one tenth, and stood at 4.7% in July.

Through July, US inflation declined for 12 consecutive months since in June 2022 it broke its record of the last 40 years by standing at 9.1%, as a result of the interruption of the supply chain due to the war of Russia vs. Ukraine and the last blows of the pandemic.

To try to control prices, the Federal Reserve began in March of last year to raise interest rates, which today stand at a range of 5.25% and 5.5%, their highest level since 2001.

In the latest announcement made two weeks ago, the Fed Chairman, Jerome Powell, considered that still “it will take time” see the effects of the central bank’s monetary policy, “especially on inflation”, which will still take months to return to the desired 2%.

In this context, the BLS noted that the energy prices have fallen 12.5% ​​in one year, while food rose 4.9% in that time.

The rise in prices for the living place -which rose four tenths in July and accumulated a year-on-year increase of 7.7%- was the one that contributed the most to the monthly increase in all prices and represented more than 90% of said increase.

In monthly terms, food prices rose 0.2% in July, and energy prices 0.1%, and underlying inflation rose two tenths.


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