Forex
US Inflation Holds Steady, Economists Predict Accelerated Economic Growth
US inflation remained steady in July at 3.7% above the Federal Reserve's 2% target for the 65th consecutive month, according to government data released on Wednesday.
The pause in decline from a recent war-induced peak is expected to intensify debate among central bankers over whether interest rates should be lifted or held steady.
Consumer spending decelerated modestly last month and flatlined against inflation, while personal incomes rose faster than inflation, suggesting an uptick in consumption as the year progresses.
The data points to an acceleration in overall economic growth in the third quarter, with economists predicting a rate of at least 3% - double the second quarter's unrevised annualized growth rate of 1.5%.