An inflation measure closely tracked by the Federal Reserve remained low last month, extending a trend of cooling price increases that clears the way for the Fed to start cutting its key interest rate next month for the first time in 4 1/2 years. Prices rose just 0.2% from June to July, up a tick from the previous month’s 0.1% increase.
WASHINGTON — An inflation measure closely tracked by the Federal Reserve remained low last month, extending a trend of cooling price increases that clears the way for the Fed to start cutting its key interest ratePrices rose just 0.2% from June to July, the Commerce Department said Friday, up a tick from the previous month’s 0.1% increase. Compared with a year earlier, inflation was unchanged at 2.5%.
Excluding volatile food and energy costs, so-called core inflation rose 0.2% from June to July, the same as in the previous month. Measured from a year earlier, core prices increased 2.6%, also unchanged from the previous year. Economists closely watch core prices, which typically provide a better read of future inflation trends.
In general, the PCE index tends to show a lower inflation rate than CPI. In part, that’s because rents, which have been high, carry double the weight in the CPI that they do in the index released Friday., Fed Chair Jerome Powell attributed the inflation surge that erupted in 2021 to a “collision” of reduced supply stemming from the pandemic’s disruptions with a jump in demand as consumers ramped up spending, drawing on savings juiced by federal stimulus checks.
Federal Reserve System General News F U.S. News W Business Washington News U.S. News Washington News
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inflation likely stayed low last month as Federal Reserve edges closer to cutting ratesIf the Federal Reserve needs any further evidence that the worst price spike in four decades is steadily easing, it’s likely to come Wednesday, when the government is expected to report that inflation cooled further last month.
Read more »
Inflation likely stayed low last month as Federal Reserve edges closer to cutting ratesIf the Federal Reserve needs any further evidence that the worst price spike in four decades is steadily easing, it’s likely to come Wednesday, when the government is expected to report that inflation cooled further last month. Consumer prices are thought to have risen just 0.
Read more »
Federal Reserve's favored inflation gauge shows price pressures easing as rate cuts nearAn inflation measure closely tracked by the Federal Reserve remained low last month, extending a trend of cooling price increases that clears the way for the Fed to start cutting its key interest rate next month for the first time in 4 1/2 years.
Read more »
Consumer Price Index growth set to ease in July as Federal Reserve mulls rate cutsThe Bureau of Labor Statistics (BLS) will publish the highly anticipated Consumer Price Index (CPI) inflation data from the United States (US) for July on Wednesday at 12:30 GMT.
Read more »
PCE inflation data to hint at the size of upcoming Federal Reserve rate cutThe United States (US) Bureau of Economic Analysis (BEA) will release the high-impact core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s (Fed) preferred inflation gauge, on Friday at 12:30 GMT.
Read more »
5 top money moves to consider before the Federal Reserve's first rate cut since 2020As soon as the Fed starts lowering interest rates, many types of consumer loans and savings products will be impacted. Here's how to make the most of it.
Read more »