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There's A Big Sign Consumer Inflation Could Grind Lower In The Months Ahead
HuffPost • • general
Key Points:
- Wholesale inflation in the U.S. slowed in July, with the producer price index rising 4.7% year-over-year, down from 5.5% in June, and monthly wholesale prices remaining flat from June to July.
- Core wholesale inflation, which excludes volatile food and energy prices, also decreased to 4.2% year-over-year in July from 4.7% in June, indicating a broader easing of inflationary pressures.
- Despite the cooling inflation, consumer prices have increased faster than wages for four consecutive months, posing affordability challenges for many Americans and potentially limiting future consumer spending.
- Rising gas prices in late July and early August could reverse some of the inflation gains, potentially pushing inflation higher in the upcoming reports.
- The Federal Reserve may use the recent inflation cooling as a reason to hold interest rates steady in September, especially amid signs of economic weakness such as job cuts in July.
