Https Www Msn Com En Us Money Markets Annual Inflation Rate Slows To 2 9 In July Lowest Since 2021 Ar Aa1omtnz
US Inflation Cools to Lowest Level Since 2021
Headline Reads 0.2% Monthly Increase, 8.5% Annual Rate
The US Consumer Price Index (CPI), a widely used measure of inflation, rose 0.2% in July, marking the lowest monthly increase since January 2022. This leaves the annual inflation rate at 8.5%, still elevated but down from June's 9.1%.
Shelter Costs Drive Monthly Price Hike
Shelter costs, which account for about one-third of the CPI, drove the majority of the monthly price increase, contributing 0.9% to the overall 0.2% rise.
Inflation Below Expectations
July's inflation data came in below economists' expectations of 0.3% monthly and 8.7% annual growth. It also marks the mildest year-over-year increase since January 2022.
Annual Inflation at Lowest Since March 2021
With the July CPI report, the annual inflation rate has fallen to its lowest level since March 2021. This suggests that the Federal Reserve's interest rate hikes may be having the desired effect of curbing inflation.
Excluding Food and Energy, Inflation Moderates
Excluding volatile food and energy prices, the so-called "core CPI" rose 0.3% in July. This is down from June's 0.7% increase and indicates that inflation pressures are easing in some sectors of the economy.
Conclusion
July's inflation data provides cautious optimism that inflation may be starting to moderate. However, the annual inflation rate remains well above the Fed's target of 2%, suggesting that further interest rate hikes may be necessary to bring inflation under control.
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Https Www Cnbcafrica Com 2024 U S Annual Inflation Rate Slows To 2 9 In July Lowest Since 2021
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