China News Service Washington, August 10th. Data released by the U.S. Department of Labor on the 10th showed that the U.S. consumer price index (CPI) in July rose 8.5% year-on-year, still operating at a high level. Thanks to the decline in energy prices, CPI did not rise month-on-month in July.
On August 10th local time, a customer in a supermarket in New York, USA bought food. Photo by Liao Pan, China News Service reporter
The above data basically meets market expectations. Associated Press analysis believes that combined with the employment data in July and signs of slight ease in inflation, Federal Reserve may raise 250 basis points after the September interest rate meeting, rather than the third consecutive rate hike expected by the market to 75 basis points.
The main reason for the decline in US CPI in July is the decline in energy prices. Judging from the month-on-month data, energy prices fell by 4.6%, of which gasoline prices fell by 7.7%. According to data from the American Automobile Association on the 10th, the average gasoline price in the United States was $4.01 per gallon (1 gallon is about 3.7 liters), down $1 per gallon from the peak in mid-June.
On August 10th local time, a customer in a supermarket in New York, USA bought food. Photo by Liao Pan, China News Service reporter
American Airlines fares, used cars, clothing and other prices also fell slightly month-on-month in July. Food prices continued to rise, up 1.1% month-on-month. After excluding the volatile food and energy prices, the US core CPI rose 0.3% month-on-month and 5.9% year-on-year in July.
"Wall Street Journal " pointed out that although the Fed aims to control the overall inflation index, the core CPI is an indicator to judge the future inflation trend of the United States. The current scope of inflation in the United States is very wide, and the core CPI is still high, and price pressure in the real estate market, service industry and other fields may continue.
compared with the 40-year peak of CPI in June, which rose 9.1% year-on-year, and US public opinion generally regards July inflation data as a positive sign. Bloomberg News believes that CPI in July may give the Fed some policy breathing room, but the inflation index above 8% and the continued rise in food prices mean that the pressure from the Biden administration and the Democratic Party has not eased. (End)
