The rate of US inflation increased in July for the first time in more than a year, despite the Federal Reserve’s steady march into the highest interest rates in decades.
According to the US Bureau of Labor Statistics’ (BLS) Consumer Price Index (CPI) report released on Thursday, the aggregate cost of consumer goods rose by 3.2% in July 2023 as compared to July 2022. With June’s 3% increase a month prior, it was the first time in 13 months that inflation tacked upward.At its meeting last month, the Federal Reserve, the US’ central bank, increased interest rates by a moderate amount which nonetheless brought them to their highest point in 22 years. With the bank’s goal of US inflation being reduced to no higher than 2%, the immediate expectation of upward-creeping inflation would likely be that more rate hikes are on the way as well.
