Inflation dipped below 3% for the first time in three years, and that, combined with other economic indicators, may push the Fed to slash interest rates more than once.
The annual inflation rate fell below 3% in July for the first time in over three years, according to the Consumer Price Index released by the Bureau of Labor Statistics . On an annual basis, prices rose 2.9% in July, a slight softening from the 3.1% growth the previous month. On a monthly basis, prices increased 0.2% after dipping 0.1% in June. The last time the overall CPI inflation rate was less than 2.9% was in March 2021.
Consumers may start to see some easing in car insurance costs, one of the greatest drivers of overall inflation for months, according to Jerry's Vice President of Insurance Operations Josh Damico. Although July's 18.6% increase is still hard on consumers' wallets, Damico said it is encouraging that cost spikes are finally slowing. Insurance costs have skyrocketed in the last few years as inflation has driven up the costs of auto repairs and drivers submit more extensive claims.
Mortgage rates have moved in sync with the positive economic indicators and it becomes more apparent that the Fed will begin to ease its monetary policy this year. The decline in mortgage rates, combined with a growing supply of housing inventory, should help increase prospective homebuyers' appetites and give existing homeowners the opportunity to refinance. "In the medium-run, we expect the economy to land softly and housing inventory to continue to recover," Realtor.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.
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.
This is now a labor data-first Fed, not an inflation data-first FedThis is now a labor data-first Fed, not an inflation data-first Fed
Read more »
Fed’s Bostic: Open to September rate cut as inflation coolsSpeaking in an interview with the Financial Times (FT) early Thursday, Atlanta Federal Reserve (Fed) President Raphael Bostic said that he is “open to September rate cut as inflation cools.” Additional quotes Price pressures eased officials also needed to be conscious of their mandate of maintaining full employment.
Read more »
US inflation slowed again in July, clearing the way for the Fed to begin cutting ratesYear-over-year inflation reached its lowest level in more than three years in July, the latest sign that the worst price spike in four decades is fading and setting up the Federal Reserve for an interest rate cut in September.
Read more »
US inflation slowed again in July, clearing the way for the Fed to begin cutting ratesWednesday’s report from the Labor Department showed that consumer prices rose just 0.2% from June to July after dropping slightly the previous month for the...
Read more »
Inflation slowed again in July, clearing the way for the Fed to begin cutting ratesThe government said nearly all the increase last month reflected higher rental prices and housing costs.
Read more »
US inflation hits 2.9% in July, paving way for Fed to finally start cutting ratesMeasured from a year earlier, inflation was forecast to have remained 3%, the same as in June.
Read more »