11th July 2024 – (New York) According to the U.S. Labour Department’s report, consumer inflation in June increased by 3.0 per cent compared to the previous year, following increases of 3.3 per cent in May and 3.4 per cent in April. The Consumer Price Index (CPI) declined by 0.1 per cent on a seasonally adjusted basis in June, after remaining unchanged in May. In April, the CPI rose by 0.3 per cent.
The core CPI, which excludes food and energy, increased by 0.1 per cent in June, following a 0.2 per cent rise in May and a 0.3 per cent increase in April. Over the last 12 months, the core CPI has risen by 3.3 per cent, marking the smallest increase in that index since April 2021.
In June, the energy index fell by 2.0 per cent, consistent with the preceding month. However, the index for food increased by 0.2 per cent.
Among the indexes that saw an increase in June were shelter, motor vehicle insurance, household furnishings and operations, medical care, and personal care. On the other hand, the indexes for airline fares used cars and trucks, and communication decreased during the month.
Federal Reserve Chair Jerome Powell stated earlier in the week that the central bank is moving closer to a decision on rate cuts but emphasized the need for greater confidence in progress on inflation before taking such action. Powell expressed the desire for more positive inflation readings to ensure a sustainable move toward the target rate of 2 per cent.
Powell reiterated that the Federal Reserve’s decisions are based on economic data and not influenced by political factors. It is expected that the central bank will cut rates before the November 5th election.
The next meeting of the Federal Reserve is scheduled for July 30-31. Officials are anticipated to maintain the benchmark interest rate within the range of 5.25 per cent to 5.5 per cent, which has been in place since July of the previous year.
According to the Chicago Mercantile Exchange Group’s FedWatch Tool, which tracks market expectations of the Fed funds target rate, the probability of the Fed maintaining rates at the July meeting is over 95 per cent as of Thursday. The probability of a rate cut at the September meeting stands at 66 per cent.
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English (US) ·