Inflation eased last month as energy prices tumbled, according to a report closely watched by the Federal Reserve. consumer inflation business kprc2 click2houston
According to a Commerce Department report Friday that is closely watched by the Federal Reserve, consumer prices rose 6.3% in July from a year earlier after posting an annual increase of 6.8% in June, the biggest jump since 1982. Energy prices made the difference in July: They dropped last month after surging in June.
There was hope that the Fed might signal a moderation in rate increases if inflation were to show further signs of easing.So-called core inflation, which excludes volatile food and energy prices, rose 4.6% last month from a year earlier after rising 4.8% in June. The drop — along with a reduction in the Labor Department's consumer price index last month — suggests that inflationary pressures may be easing.
But the Fed prefers the PCE index as a gauge of inflationary pressures, partly because the Commerce index attempts to measure how consumers adjust to rising prices by, for example, substituting cheaper store brands for pricier name brands.CPI has been showing higher inflation than PCE; Last month, for instance, CPI was running at an 8.5% annual pace after hitting a four-decade high 9.1% in June. One reason: The Labor Department’s index gives more weight to rents, which have soared this year.
“The American people are starting to get some relief from high prices, and the Inflation Reduction Act that I signed last month will also help bring prices down,” Biden said Friday. “Gas prices decreased every day this summer – the fastest decline in over a decade. And, today’s report showed that personal income was up last month as well.”
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Opinion | Student Debt Forgiveness Is Biden’s Bluto MomentFrom WSJopinion: The loan handout is a thumb in the eye to every American who went to trade school, or got an apprenticeship, or simply went to work—and now must cover the poor financial decisions of the college elite, writes KimStrassel
Leer más »
Fed's favorite inflation gauge shows prices fell in JulyConsumer prices fell 0.1% in July, as plunging gasoline prices dragged down a price index that's closely watched by the Federal Reserve.
Leer más »
Fed's preferred inflation measure shows price pressures eased in JulyJuly's PCE report could be another sign that inflation has peaked in the U.S.
Leer más »
Powell: Fed could keep lifting rates sharply ‘for some time’Federal Reserve Chair Jerome Powell announced Friday that the Fed will likely impose additional interest rate hikes in the coming months in an effort to tame record high inflation.
Leer más »
Bitcoin price taps $21.3K ahead of Fed Chair Powell Jackson Hole speechTense times for Bitcoin markets ahead of fresh comments from Fed Chair Jerome Powell.
Leer más »
Why Fed's Powell speech on Friday likely matters less for stocks than a sputtering housing marketInflation, job losses and the cooling housing market are top factors that could drive a U.S. recession, according to Charles Schwab's Kevin Gordon.
Leer más »