Fed expected to leave rates unchanged next month after soft inflation data
Federal Reserve policymakers are likely to feel little fresh urgency to raise interest rates in September after data on Wednesday showed inflation cooled on a year-over-year basis for a second straight month, but they may take little comfort that monetary policy is tight enough to continue the easing trend. The Consumer Price Index rose 3.4 percent in the 12 months through July, down from 3.5…
The Federal Reserve is expected to hold interest rates steady next month following soft inflation data reported on Wednesday, according to various reports. The Consumer Price Index (CPI) increased by 3.4% over the past year, down from 3.5% in June, as per the Bureau of Labor Statistics. This figures aligns with economists' expectations. When food and energy prices, which are often volatile, are excluded, the core CPI rose by 2.5% over the same period, up from 2.6% the previous month.
However, the extent of inflation's cooling is somewhat mixed. A notable decline in hotel prices, which may not persist, played a significant role in the recent moderation in core inflation. Additionally, core goods experienced price increases in more categories compared to June, reported Omair Sharif, founder of Inflation Insights.
Technology prices surged due to heightened demand for artificial intelligence, while gasoline prices fell, contributing to the overall inflation trend.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
