financetom
Economy
financetom
/
Economy
/
US consumer prices increase as expected in July
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US consumer prices increase as expected in July
Aug 14, 2024 6:16 AM

WASHINGTON (Reuters) - U.S. consumer prices rebounded as expected in July, but the trend remained consistent with subsiding inflation and did not change expectations that the Federal Reserve will cut interest rates next month.

The consumer price index increased 0.2% last month after falling 0.1% in June, the Labor Department's Bureau of Labor Statistics said on Wednesday. In the 12 months through July, the CPI increased 2.9% after advancing 3.0% in June.

Economists polled by Reuters had forecast the CPI increasing 0.2% on the month and rising 3.0% year-on-year. The government on Tuesday reported a mild increase in producer prices in July.

Annual consumer price growth has moderated considerably from a peak of 9.1% in June 2022 as higher borrowing costs cool demand. While still elevated, inflation is moving towards the U.S. central bank's 2% target.

The odds of a rate cut at the Fed's Sept. 17-18 policy meeting are split between half a percentage point and 25 basis points. The rate pricing mostly reflects a jump in the unemployment rate to near a three-year high of 4.3% in July.

Economists, however, argue that the labor market would have to deteriorate considerably for the central bank to deliver a 50 basis point rate reduction. The fourth straight monthly increase in the jobless rate was mostly driven by an immigration-induced rise in labor supply rather than layoffs.

The Fed has maintained its benchmark overnight interest rate in the current 5.25%-5.50% range for a year, having raised it by 525 basis points in 2022 and 2023.

Excluding the volatile food and energy components, the CPI rose 0.2% in July after rising 0.1% in June. In the 12 months through July, the core CPI advanced 3.2%. That was the smallest year-on-year increase since April 2021 and followed a 3.3% gain in June.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Fed poised to cut rates this week, with more easing likely on tap
Fed poised to cut rates this week, with more easing likely on tap
Oct 27, 2025
(Reuters) -Federal Reserve policymakers are widely expected to reduce U.S. short-term borrowing costs  this week by a quarter of a percentage point for the second time this year as they look to prevent further slowing in the labor market. Odds are it won't be the last of the series.  Climbing unemployment insurance claims suggest that labor market demand continues to...
US Dollar Falls Early Monday; Focus on FOMC Meeting
US Dollar Falls Early Monday; Focus on FOMC Meeting
Oct 27, 2025
07:50 AM EDT, 10/27/2025 (MT Newswires) -- The US dollar fell against its major trading partners early Monday as the US data schedule continues to be impacted by the ongoing government shutdown. The focus this week will be on Wednesday's Federal Open Market Committee announcement following conclusion of the two-day meeting, with expectations of a further interest rate reduction from...
Crypto Markets Today: Bitcoin Surges Past $115K as Markets Eye Fed Rate Cut
Crypto Markets Today: Bitcoin Surges Past $115K as Markets Eye Fed Rate Cut
Oct 27, 2025
The crypto markets experienced a much-needed bounce on Monday, with bitcoin (BTC) rising to $115,200 while ether (ETH) traded at $4,160. The rise can be attributed to anticipation around Wednesday's Federal Reserve meeting, where an interest rate cut is expected. Bitcoin dominance continues to rise to demonstrate relative weakness across the altcoin market, although there were some outliers on Monday...
Chicago Fed puts October unemployment rate at 4.35%, little changed from last official report
Chicago Fed puts October unemployment rate at 4.35%, little changed from last official report
Oct 27, 2025
WASHINGTON (Reuters) -The U.S. unemployment rate remained stable at around 4.3% in October according to a Chicago Federal Reserve bank economic model that uses private data to estimate the jobless rate even in the absence of government statistics that have been unavailable since the start of an ongoing federal shutdown. The last official unemployment report was for August and also...
Copyright 2023-2026 - www.financetom.com All Rights Reserved