US Inflation Ticks Down Amid Ongoing Iran Tensions
The latest inflation data shows that prices in the US ticked down slightly in July, despite ongoing tensions between the US and Iran. The Consumer Price Index (CPI) rose by just 0.1% last month, with the annual inflation rate falling to 3.4%, down from 3.5% in June.
This decrease is in line with economists' projections ahead of the release, but it still means that inflation remains above the Federal Reserve's target of 2%. The personal consumption expenditures price index, which is the Fed's preferred measure of prices, showed an annual inflation rate of 3.7% in June.
The Fed has been clear about its commitment to price stability, with Chairman Kevin Warsh saying that 'there is no soft inflation target' and that the central bank will continue to work towards a 2% target.