The U.S. Department of Labor announced on Wednesday that the Consumer Price Index rose 0.1% month-over-month and 3.4% year-over-year in July, continuing to decline from the three-and-a-half-year high of 4.2% seen in May, yet still significantly above the Federal Reserve's 2% target. Excluding the more volatile food and energy components, the core inflation rate rose 2.5% year-over-year. With the ongoing war in Iran restricting fuel supplies, living costs remain under upward pressure; although energy prices fell 1.5% month-over-month in July, they were nearly 15% higher than a year earlier, while airfare rose 2.2% month-over-month and 25.5% year-over-year. As inflation data was released, the Federal Reserve is considering whether to raise interest rates at its September meeting, when it will also receive a new inflation report. Economists believe price pressures have eased since the beginning of the year, but the year-end inflation rate may not fall below 3%. Meanwhile, U.S. hiring and wage growth have both slowed significantly—July’s 3.4% inflation rate exceeded the 3.2% year-over-year increase in average hourly earnings, indicating that workers’ purchasing power continues to decline.
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Original article: toutiao.com/article/1873378525179979/
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