US Inflation Slightly Rises 3.2 Percent as of July 2023. in July 2023, inflation in the United States (US) cooled down again, thus encouraging the US Central Bank or The Federal Reserve (The Fed) to be able to tame price pressures without triggering a recession.
Based on data from the US Bureau of Labor Statistics, the consumer price index (CPI) rose 3.2 percent last month on an annual basis (year-on-year/yoy). When compared to June 2023, inflation in July 2023 rose 0.2 percent.
The CPI, which excludes food and energy prices, rose 0.2 percent, compared to the previous month (mtm). Meanwhile, when compared to the same period last year, or the so-called core measurement (which economists see as a more appropriate indicator for measuring inflation), it rose 4.7 percent.
This realization touched its lowest level since 2021, but remained above the Fed’s target of 2 percent. While still high, inflation has slowed most months since peaking at 6.6 percent in September 2022.
US Inflation Slightly Rises. The CPI progress as of July 2023 combined with solid economic growth and a healthy but gradually cooling labor market, is a positive sentiment for central bank policy.
It is known that the data released by the Bureau of Labor Statistics on Thursday (10/8/2023) will be very important in determining the policy of the Fed in the coming weeks. The latest CPI report is also one of a number of major data releases that Fed officials will discuss in September 2023.
Investors themselves also do not expect the central bank to continue raising interest rates, after its benchmark interest rate in July 2023 hit its highest level in 22 years. If current trends continue, then it is likely that the Fed will leave interest rates unchanged next month.