The consumer price index in the United States is expected to show a slower increase in July as gasoline prices fell across the country, but inflationary pressures will remain near 40-year highs in the greater economy of the world.
According to economists polled by Bloomberg, CPI figures to be released Wednesday at 8:30 a.m. EST will show an 8.7% annual increase last month from July 2021 and an increase of 0 .2% compared to June. These figures would mark a slight slowdown in inflation compared to the annual increase of 9.1% and the monthly increase of 1.3% recorded in June.
However, they are unlikely to represent a change large enough to prevent the Federal Reserve from moving forward with a more aggressive tightening of monetary policy to control inflation.
While the core CPI measure – which strips out more volatile food and energy prices – is expected to register a smaller monthly increase of 0.5% from June’s 0.7%, on a annual, it should accelerate to 6.1% from 5.9 percent.
Inflation data will be released following a strong jobs report last Friday that stamped out fears of a near-term recession but suggested the Fed was struggling to cool the economy in overheated.
It comes as President Joe Biden’s administration and congressional Democrats celebrate the Senate’s passage of a $700 billion climate, tax and health bill that represents a crucial pillar of the agenda. president’s economy.
Although they dubbed it the Inflation Reduction Act, the bill is not expected to have a significant effect on prices in the short term. However, certain measures aim to reduce costs in the medium and long term, including a provision allowing the government to negotiate the price of prescription drugs.
