The slowdown in US annual inflation in June.. Will the interest rate hike stop?

2023-07-28 13:57:21
Merchandise store in America

Annual inflation recorded a significant slowdown in the United States in June, which may precipitate the end of the US Federal Reserve, the strongest monetary tightening cycle since the eighties.

And data from the Ministry of Commerce revealed, on Friday, that the personal consumption expenditures price index rose by 0.2 percent last month, following increasing 0.1 percent in May.

In the twelve months through June, the personal consumption expenditures price index rose 3 percent.

This is the smallest annual increase since March 2021 and follows an increase of 3.8% in May.

Excluding volatile items such as food and energy, the index rose 0.2 percent in June, following rising 0.3 percent in the previous month.

Commerce Department data also showed that consumer spending, which accounts for more than two-thirds of US economic activity, grew by 0.5 percent last month on a monthly basis.

May data was revised up to show spending growth of 0.2% instead of 0.1%.

On an annual basis, consumer spending increased 1.6 percent in the last quarter, down from 4.2 percent in the first quarter.

The increase was sufficient to contribute to boosting the economic growth rate to 2.4 percent in the last quarter, from the rate of two percent announced in the first three months of the year.

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