US: Headline inflation rose for first time in a year
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The main CPI index rose in July from 3 to 3.2 percent in annual terms. The Bureau of Labor Statistics (BLS) reported on Thursday. This is the first increase after 12 months of decline in the index. According to the Wall Street Journal, this does not necessarily mean further interest rate hikes.
According to the press release, the Consumer Price Index (CPI) was 3.2 percent in July. year-on-year and increased by 0.2 percent. month to month. This was slightly below the average forecast of economists surveyed by the Wall Street Journal.
The “WSJ” notes that although the 12-month index increased for the first time in a year, this is the result of price changes between June and July last year, when inflation reached a record high. Monthly growth remained low and stable in July and, according to the daily, reassured those who feared that the increase in prices would lead to another increase in interest rates by the Federal Reserve. At its July meeting, the Fed raised its key interest rate range to a 22-year high.
The biggest driver of inflation in July was the cost of renting apartments and food prices. Core inflation – which excludes energy and food prices – also increased by 0.2%. in July, and on a 12-month basis it fell from 4.8 to 4.7 percent.
“On the bigger picture, we’re still seeing disinflation and things are moving in the right direction,” said economist Pooja Sriram, quoted by the Washington Post.
From Washington Oskar Górzyński (PAP)
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