The Consumer Price Index (CPI) data for July has been published by the Bureau of Labor Statistics (BLS) in the United States. The data indicates an increase in inflation in the country to 3.2%. This change is notable as it reflects a break in the downward pattern. The current inflation numbers showcase a surge from the previous month’s rate of 3%. However, it is less in comparison to May’s rate of 4% and April’s rate of 4.9%.
July inflation number lower than expectations
The rise in inflation depicts a lower than expected inflation rate of 3.3%. The response of the Federal Reserve (Fed) to the existing inflation data remains undecided. It is of interest to monitor whether they will opt to raise interest rates or implement measures to address the situation.
Beginning in March 2022, the Fed has incrementally increased interest rates through a series of successive adjustments. It resulted in the benchmark federal funds rate reaching a targeted range of 5 to 5.25 percent.
However, the FED still has a long way to go to reach its benchmark rate of 2%. However, the current 3.2% is what was expected by many in the US. It should also be mentioned that investors will keep their eyes peeled for the movement of stocks and crypto as the CPI numbers are released.