Inflation in the US is cooling off. Michael M Santiago/Getty Images
Inflation in the US continues to cool.
The inflation rate fell significantly in June from 4.0 percent to 3.0 percent. This is the lowest level in more than two years.
The inflation rate is thus again close to the target set by the US Federal Reserve. The Fed will next decide on its key interest rates at the end of July.
Inflation in the USA fell again significantly in June. Consumer prices rose by just 3.0 percent year-on-year, after 4.0 percent in May. In the USA, inflation has thus cooled to its lowest level for more than two years.
Analysts had expected the inflation rate to fall to 3.1 percent.
The inflation rate is thus getting closer to the US Federal Reserve’s two percent target. The Fed’s next interest rate decision on July 26 is now being eagerly awaited. In June, it had taken a break in interest rates after ten increases in a row. The Federal Reserve left interest rates for the US in the range of 5.0 to 5.25 percent. This is still the highest policy rate in 16 years. The Fed had kept further rate hikes open from July.
On July 27, the European Central Bank (ECB) will decide on the key interest rates for the euro zone. Spikes by the ECB have made it clear that they intend to raise interest rates again. In the euro area and in Germany, the inflation rate is still significantly higher than in the USA.
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In the USA, rents and used cars rose the most, according to the zcompetent authority with. Energy became 17 percent cheaper than a year ago. Food prices rose 5.7 percent.
Core inflation also fell significantly from 5.3 to 4.8 percent. This rate does not take into account the often fluctuating energy and food prices. The core rate of inflation shows how firmly inflationary pressures have become entrenched throughout the economy. The core rate is also a key factor in the interest rate decisions of the US Federal Reserve.
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