The US consumer price index is expected to rise more slowly in July as gasoline prices fall across the country, but inflationary pressures will remain near a 40-year high in the world’s largest economy. .
According to economists surveyed by Bloomberg, the CPI figures released Wednesday at 8:30 a.m. ET will show an 8.7% year-over-year increase last month compared to July 2021 and an increase of 0. 2% from June. These numbers will mark a slight easing inflationary compared to the 9.1% year-on-year and 1.3% monthly gain recorded in June.
However, they are unlikely to represent a change large enough to prevent the Federal Reserve from continuing with positive tightening of monetary policy to control inflation.
While the core measure of CPI – which strips out more volatile food and energy prices – is expected to record a month-on-month gain of less than 0.5% versus 0.7% in June, on on an annual basis, it is expected to grow to 6.1% from 5.9%.
Inflation data will be released later Strong employment report Last Friday, that quelled fears of a short-term recession but showed the Fed was struggling to cool an overheated economy.
It comes as the administration of president Joe Biden and congressional Democrats have celebrated paragraph passage of the Senate on a $700 billion climate, tax and healthcare bill that represents a key pillar of the president’s economic agenda.
Although they have named it the Inflation Reduction Act, the bill is not expected to have a significant impact on prices in the short term. However, certain measures are in place to reduce costs in the medium to long term, including a provision allowing the government to negotiate the price of prescription drugs.
