US consumer price increases slowed down in July, but they are still at a 13-year high annual rate, but there are preliminary signs inflation As supply chain disruptions play a role in the entire economy, it has reached its peak.
The US Department of Labor said on Wednesday that the consumer price index rose 0.5% last month after rising 0.9% in June. In the 12 months ending in July, the CPI rose by 5.4%. The month-on-month inflation rate fell the most in 15 months.
Excluding volatile food and energy components, the CPI rose 0.3% after rising 0.9% in June. This is the smallest increase in 4 months and the so-called core CPI deceleration for the first time since February.
The core CPI rose 4.3% year-on-year after rising 4.5% in June. Since the weak data calculated by the CPI last spring gradually disappeared and the annual inflation rate has increased, these so-called base effects are stabilizing.
Economists surveyed by Reuters had predicted that the overall CPI would rise 0.5% and the core CPI would rise 0.4%.
Prices of housing, food, energy and new cars all increased in July. The second-hand car index has also risen, but it is much lower than the increase in previous months.
Gennadiy Goldberg, an interest rate strategist at TD Securities in New York, said: “In the final analysis, this is a milder reading than expected, especially in the core area.”
As companies try to rebuild inventories and overcome supply chain barriers, the rapid economic recovery has led to a mismatch between supply and demand in some key sectors
This is caused by the COVID-19 pandemic.
After the CPI data was released, the price of US Treasury bonds fell. Standard & Poor’s 500 index futures rose.
Low interest rates and nearly $6 trillion in government bailouts have also boosted demand, leading to increasing price pressures.
