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US Inflation Rate Touched Its Lowest Rate Since Early 2021
Last Updated on: October 16th, 2024
The United States Consumer Inflation slowed down to its lowest rate since June 2021, as the US Government released data on Wednesday. This news turned out to be encouraging news for US policymakers that are worried about the pressures related to a higher cost of living.
As compared to last month, the rate of inflation, signified by the Consumer Price Index, rose by 3% from 2022. This is the lowest rate of growth since March 2021. The rate of growth is down by 4% in May, as the Labor Department claimed.
To bring down the price rate and thereby cool the rate of inflation, the US Federal Reserve raised the rates of interest continuously over the year. These actions helped in lowering the growth rate of prices.
Furthermore, the Federal Reserve officials also signaled that there might be further requirements for interest rate hikes. This will help in bringing the inflation rate back to the 2% target. Hence, the report is likely to increase doubts about the additional increases in interest rates that are needed in the next few months as well.
US President Joe Biden welcomed the efforts and lauded the progress that policymakers have maintained while at the same time maintaining a low rate of unemployment. He said,
?Today’s report brings new and encouraging evidence that inflation is falling while our economy remains strong.?
After the coming out of the report, the price of stocks on Wall Street surged high, as the market is hoping for a low rate of inflation in the US economy, as it is on the verge of welcoming a likely recession.
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