By James Myers, OAN Staff
Wednesday, August 14, 2024 8:18 AM
U.S. inflation rose 2.9% year-on-year in July, below expectations, raising the possibility that the Federal Reserve will finally start cutting interest rates next month.
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The Bureau of Labor Statistics said the consumer price index rose 0.2% from the previous month last month, slightly below the 3% year-on-year increase economists had predicted and in line with expectations.
Core prices rose 3.2% year-on-year, as expected, slightly lower than June’s 3.3% increase and 0.2% month-on-month increase.
The latest report comes as consumers have dealt with rising prices over the past three years, particularly for food, rent, gasoline and other everyday necessities.
Inflation is a major issue in the upcoming presidential election, withNumber President Donald Trump blamed the Biden administration’s energy policies for the high inflation rate.
But Vice President Kamala Harris said Saturday that she would soon release a new proposal to “cut costs and strengthen our entire economy.”
Food prices were expected to remain unchanged from June to July, according to UBS economists.
Meanwhile, grocery costs have risen by more than 20% over the past three years, leading Americans to cut back on spending.
Before the Federal Reserve starts cutting its key interest rate, Fed Chairman Jerome Powell said he wants more evidence that inflation is under control.
Economists expect the first rate cut from the Fed to come in mid-September.
Additionally, mortgage rates have begun to fall in anticipation of the Fed’s first rate cut.
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