OAN Staff James Meyers
8:18 AM – Wednesday, August 14, 2024
U.S. inflation rose 2.9% in July versus a year ago, which fell below expectations in a result that likely paves the way for the Federal Reserve to finally begin cutting interest rates next month.
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The Consumer Price Index came in just under the 3% year-over-year gain economists had predicted for last month, and rose 0.2% from a month earlier, which was in line with predictions, according to the Bureau of Labor Statistics.
Core prices were in line with expectations, increasing 3.2% from a year earlier, just below June’s 3.3% increase and 0.2% from a month ago.
The latest report comes as consumers have dealt with prices skyrocketing over the past three years, especially for food, rent, gas and other everyday life necessities.
Inflation has been a major topic in the upcoming presidential election, with 45th President Donald Trump blaming the Biden administration’s energy policies for the high inflation rates.
However, Vice President Kamala Harris on Saturday said she would soon unveil new proposals to “bring down costs and also strengthen the economy overall.”
According to economists at UBS, grocery prices were expected to have been unchanged from June to July.
Meanwhile, food costs have increased over 20% in the past three years, causing Americans to tighten spending.
Before the Fed begins cutting its key interest rate Fed Chair Jerome Powell has stated that he wants additional evidence of cooling inflation.
Economists are expecting the Fed’s first rate cut to occur in mid-September.
Additionally, mortgage rates have begun to decline in anticipation of the Fed’s first rate reduction.
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