BREAKING: Inflation rose slightly to a 3.2% rate for the year ending in July, the first increase after a full year of declines, the Bureau of Labor Statistics reported on Thursday in an update to the consumer price index.
The increase in headline inflation is bad news for President Joe Biden, who has been trying to reassure voters that he is curbing price pressures, and for the Federal Reserve, which has desperately maneuvered to bring down inflation over the past year.The report also contained encouraging news, though. On a month-to-month basis, inflation was 0.2%, in line with expectations. The past few months have seen increases that would translate to about a 2.
Soaring inflation has battered households over the past two years and eroded support for President Joe Biden and his economic agenda. Republicans used the rising prices as a weapon to attack the administration and blamed big spending bills, such as Biden’s pandemic relief legislation, as major drivers of inflation.
Additionally, GDP growth for the second quarter outpaced consensus expectations at a 2.4% annual rate, showing that the economy is humming right along despite the Fed raising interest rates to the highest level in more than two decades.The rising cost of food, in particular, has been difficult for many households. The price of bread has risen 9.5% over the last year, while fats and oils have increased in price by 6.3%.
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