US Inflation Data: America may soon get relief from expensive loans. The US Central Bank Federal Reserve may start the process of reducing interest rates. A decline in inflation rate has been seen in America in June 2024. The Consumer Price Index has declined by 0.1 percent in the month of June, whereas no change was seen in it in May 2024.
The Bureau of the US Labor Department has released the inflation rate data. For the third consecutive month, there has been a decline in inflation rate in America in June. The consumer price index has declined by 0.1 percent from May to June. Whereas in its first month the Consumer Price Index remained flat. Prices have increased by 3 percent in June compared to 12 months ago, which is less than 3.3 percent in May. That means the pace of inflation rate increase has slowed down.
After this inflation rate figure, the confidence among the policy makers of the Federal Bank will increase that the inflation rate is moving towards the target of 2 percent. When the inflation rate increased in the beginning of this year, the prospects of reduction in interest rates were dealt a blow. Interest rates in America are at the highest level in 23 years. It is believed that if the inflation rate decreases in the coming months, the Federal Reserve may reduce interest rates in September 2024.
However, even though the inflation rate has come down, food items, rent, healthcare and other essential items have become costlier than the pre-Corona era, due to which the Biden government may have to bear the brunt in the US elections. Earlier, Fed Chairman Jerome Powell had said that the pace of inflation is slowing down and it is coming towards the central bank’s target of 2 percent.
Despite the decline in inflation rate in America, mixed trade is being seen in the stock market. Dow Jones is trading with a rise of 0.11 percent, Nasdaq is trading with a fall of 0.83 percent and S&P 500 is trading with a fall of 0.32 percent.
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