US inflation is falling and new economic data reinforces the case for a rate cut in September.
The producer prices in the United States increased moderately in June, by 0.2%. This confirms once again that Inflation had resumed its downward trend and reinforces the case for a rate cut in September. However, wholesale prices rose more than expected, mainly due to higher utility costs, according to government data released on Friday.
The data came a day after lower-than-expected inflation figures had revived hopes that the Federal Reserve would soon cut interest rates.
The Fed has kept rates high to meet its long-term target of 2% core inflation. On Thursday, government data showed the consumer price index (CPI), a key gauge of inflation, rose 3% year-on-year in June, from 3.3% in May.
“I think with the information coming in on inflation, growth and the labor market, some policy adjustments are likely warranted,” Mary Daly, a member of the Federal Reserve’s Monetary Policy Committee (FOMC), told reporters on Thursday. rose 0.2% last month after remaining unchanged in Maysaid on Friday the Department of Labor Bureau of Labor StatisticsEconomists polled by Reuters had forecast the PPI would rise 0.1%.
The trajectory of inflation in the US
In the 12 months to June, PPI increased by 2.6% after advancing 2.4% in May. For now, analysts expect the Federal Reserve to announce at its meeting at the end of July its intention to lower rates in September.
The government reported that Consumer prices fell in June for the first time in four years amid cheaper gasoline and a broad slowdown in the costs of goods and services, including rents.
Source: Ambito
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