Inflation eases as consumer prices rise 6.3% in July

A man shops at a supermarket on July 27, 2022, in New York.Inflation eased last month as energy prices tumbled, raising hopes that the surging costs of everything from gasoline toAccording to a Commerce Department report Friday that is closely watched by the Federal Reserve, consumer prices rose 6.3% in July from a year earlier after posting an annual increase of 6.8% in June, the biggest jump since 1982. Energy prices made the difference in July: They dropped last month after surging in June.

Inflation started rising sharply in the spring of 2021 as the economy rebounded with surprising speed from the short but devastating coronavirus recession a year earlier. Surging customer orders overwhelmed factories, ports and freight yards, leading to delays, shortages and higher prices. Inflation is a worldwide problem, especially since the Russian invasion of Ukraine drove up global food and energy prices.

But the Fed prefers the PCE index as a gauge of inflationary pressures, partly because the Commerce index attempts to measure how consumers adjust to rising prices by, for example, substituting cheaper store brands for pricier name brands.CPI has been showing higher inflation than PCE; Last month, for instance, CPI was running at an 8.5% annual pace after hitting a four-decade high 9.1% in June. One reason: The Labor Department’s index gives more weight to rents, which have soared this year.

“The American people are starting to get some relief from high prices, and the Inflation Reduction Act that I signed last month will also help bring prices down,” Biden said Friday. “Gas prices decreased every day this summer – the fastest decline in over a decade. And, today’s report showed that personal income was up last month as well.”

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Inflation eases as consumer prices rise 6.3% in JulyInflation eased last month as energy prices tumbled, according to a report closely watched by the Federal Reserve. Still at a 40 year high. Eases?
Source: WashTimes - 🏆 235. / 63 Read more »

Inflation eases as consumer prices rise 6.3% in JulyInflation eased last month as energy prices tumbled, according to a report closely watched by the Federal Reserve. See the latest economic numbers.
Source: dothaneagle - 🏆 337. / 59 Read more »

Inflation eases as consumer prices rise 6.3% in JulyInflation eased last month as energy prices tumbled, according to a report closely watched by the Federal Reserve. See the latest economic numbers.
Source: TucsonStar - 🏆 339. / 59 Read more »