The inflation rate in the US is almost back to normal. In June, the number fell to just three percent, while a month earlier prices had risen four percent from May last year.
Falling prices are mainly caused by falling energy prices. This can also be seen by looking at core inflation, the index which shows the increase in prices, excluding fuel and foodstuffs. In June, that number dropped to 4.8%, while a month earlier, the increase was still 5%.
The numbers were met with enthusiasm on Wall Street. Stocks, for example, rallied sharply, and the dollar exchange rate also posted modest gains.
The Fed is set to meet later this month to discuss another interest rate hike and has already announced that interest rates will almost certainly be raised. In June, the US central bank decided to put interest rate hikes on hold after increasing them tenfold in a row.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
