U.S. Inflation Update

The rapid rise in U.S. consumer prices Increase Due to supply chain constraints and soaring demand, inflationary pressures continued to exist, and July was still at a 13-year high.

The Consumer Price Index (CPI) released by the US Bureau of Labor Statistics rose 5.4% year-on-year in July, exceeding the 5.3% expected by economists. This is in line with the 5.4% increase reported in June, which is the largest increase since 2008.

On a monthly basis, prices rose by 0.5%, while in June they rose by 0.9%.

Price pressures, even if volatile commodities such as food and energy are excluded, have hardly alleviated. Compared with the same period last year, July’s “core” indicator increased by 4.3%, slightly lower than June’s 4.5%.

Whether the recent rise in consumer prices will evolve into longer-lasting inflation is the focus of debate between policymakers and economists.

The Federal Reserve generally believes that as the shortages and supply chain constraints associated with the pandemic ease, rising costs will weaken over time.But Fed Chairman Jay Powell (Jay Powell) recently admit Inflation risks are “upward” in the short term.

Recent data shows that inflationary pressures have begun to extend beyond the sectors most affected by the economic reopening-such as air tickets and other travel-related expenses-causing people to think that inflation will not be just a “temporary” phenomenon. Worry.Economists are watching the recent rise Housing cost, Especially wage growth.

More and more U.S. central bank governors have begun to argue that the Fed should consider reducing its unprecedented monetary policy stimulus measures as soon as possible, including the monthly purchase of US$120 billion in institutional mortgage-backed securities and Treasury assets.

The Fed has stated that it will maintain this rate until it sees “significant progress” in its goal of 2% average inflation and maximum employment.

Rafael Bostic, chairman of the Atlanta Fed and a voter on the Federal Open Market Committee, said this week that the Fed has achieved the first of these goals. Supported by Rick Rosengren and James Brad. St. Louis and others.

Federal Reserve Governor Christopher Waller recently Handle a case The “reduction” was announced in September, and Vice Chairman Richard Clarida supported action later this year.

Powell did not propose a specific timetable, but confirmed that a debate has taken place in progress On how the central bank will cancel its easing policy.

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