Inflation in US: Inflation in America declined more than expected and stood at three percent last month. This is the third consecutive month when inflation has moderated. This information has been received from government data. This indicates that the sharp increase in inflation that had happened in four decades is now coming under control and with this the US central bank Federal Reserve can take steps to cut the policy rate in the coming days. According to official data, inflation has decreased by 0.1 percent in the month of June as compared to May. Inflation on annual basis was three percent last month which was 3.3 percent in May.
Inflation coming closer to Federal Reserve’s target
The latest inflation data may agree with the Federal Reserve that inflation is coming in line with its two percent target. According to the data, although inflation has moderated, the inflation of essential commodities like food items, rent, health care remains higher than before the pandemic. Now it remains to be seen how the Federal Reserve reacts to this inflation rate.
Reaction can be seen in the stock market
Lower than expected inflation figures in America are positive news for the stock market. Reaction to this can be seen in the market on Friday. Especially a rise can be seen in IT stocks.
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