GrassRoots50

Breaking News Stories

Inflation Falls Below Expectations As Economy Cools

Rising prices continue to weigh on the finances of the average American, with inflation falling slightly in June compared to a year ago, according to the latest data released by the Bureau of Labor Statistics (BLS) on Wednesday.

According to the Bureau of Labor Statistics, the Consumer Price Index (CPI), a broad gauge of the prices of everyday items, rose 3.0% year-over-year in June, down 0.1% month-over-month from 3.3% in May. The core CPI, which excludes volatile energy and food prices, remained elevated, rising 3.3% year-over-year in June from 3.4% in May. (Related article: Biden uses the dollar as a hammer, but Americans may be the ones who bear the brunt.)

inflation Peaked It rose from 1.4% year-on-year in January 2021 and has never been able to dip below 3% since, before rising to 9% in June 2022 under President Joe Biden. Economists expect inflation to rise 0.1% in June before falling to 3.1% for the year. according to To MarketWatch.

In response to rising inflation, the Federal Reserve set the federal funds rate at a 23-year high of 5.25% to 5.50% in an effort to slow the economy. As of Thursday morning, most investors do not expect the Fed to cut interest rates until the Federal Open Market Committee's September meeting due to lingering inflation that has significantly raised the cost of credit for consumers and businesses. according to to CME Group's FedWatch tool. (Related article: More Americans max out their credit cards and miss payments than during the pandemic)

The unemployment rate rose slightly in June to 4.1%. The U.S. economy added 206,000 nonfarm payrolls, but the bulk of the growth came from an increase of 70,000 in government payrolls. Federal Reserve Chairman Jerome Powell said in congressional testimony on Tuesday that the job market appears to be cooling, raising expectations that interest rate cuts are on the way as the economy slows. according to To ABC News.

The latest figures show real gross domestic product (GDP) rising at an annualized rate of just 1.4% in the first quarter of 2024, down from a 3.4% increase in the fourth quarter of 2023. estimate According to the Bureau of Economic Analysis, slowing growth and high inflation have raised concerns that we may be entering a period of stagflation similar to the one that devastated Americans' finances in the 1970s and early 1980s.

As an independent, nonpartisan news service, all content produced by the Daily Caller News Foundation is available free of charge to any legitimate news publisher with a large readership. All republished articles must include our logo, reporter byline, and affiliation with the DCNF. If you have any questions about our guidelines or partnering with us, please contact us at licensing@dailycallernewsfoundation.org.

Share this post:

Related Posts