Bloomberg News Reports that last June, US inflation had soared to a 40-year high and exceeded just beyond 9%. This year in June, if economists are to be believed, the rate at which price growth is occurring might decelerate at 3%.
Data from the Bureau of Labor Statistics
As per data released by the Bureau of Labor Statistics, the consumer price index, which is a parameter or marker closely monitored, is a measure of inflation.
Math is expected to flatter about the annual figure a little. However, the rapid slowdown in cost escalation marks one of the key milestones for the nation. The 3.1%, which is a median estimate, is just 1% point higher compared to the average inflation rate in 3 years, way ahead of the pandemic.
Although the phrase “All that glitters is not Gold” is apt for the current scenario. Americans are enjoying lower prices. Clothes, groceries, and car repairs have become even more expensive.
The Fed’s marker
The Federal Reserve watches a key measure, which is the “core’’. And it is known as the CPI or consumer price index. This marker is expected to show lower prices for goods and services, which does not include food and energy, continue to remain up by 5% compared to a year ago.
And this scenario is likely to continue to exert pressure on the central bank to raise the interest rates. It also also maintains them at a higher figure for longer.
Bloomberg News reports that speaking about Fed, the Senate Banking Committee is to consider President Joe Biden to pick for the Federal Reserve Board, just a little ahead of the CPI release. If the committee approves, the nominations will proceed to the final vote on the floor of the Senate.
