Mati Barnhart, knitted news10.08.22 16:37 13 Bab Tashfav
Inflation in the US is slowing down: the US consumer price index rose by 8.5% in July compared to the same month last year, when in June there was an increase of 9.1%.
The main reason for the slowdown in inflation is the drop in fuel prices. The monthly consumer price index showed no increase between June and July, compared to a 1.3% increase between May and June.
These two figures represent an improvement compared to the forecasts of economists who predicted a 0.2% increase in the monthly consumer price index, and an annual increase of 8.7%. Despite this, average inflation is still at a 40-year high.
The change does not appear to be significant enough to halt the Federal Reserve’s plan to take more aggressive steps to slow inflation.
Following the good news, shares on Wall Street jumped, with the S&P 500 rising 1.6%. The Nasdaq also rose by 2.2%.
These figures come after the Biden administration and the Democrats in Congress managed to pass a law worth 700 billion dollars to deal with climate issues, taxes and health insurance. The law is a key step in the president’s economic agenda. Although the law should not affect prices in the short term, certain elements of it are designed to lower prices in the medium and long term, including permission for the government to impose certain regulation on the prices of prescription drugs.
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