5 hours agoGas prices lower US inflation, but will this last?
Periskopi(6 hours ago)
(6 hours ago)US inflation was eased last month, while the cost of energy and fuel filling fell, but questions remain whether it will be short-lived due to renewed conflict in the Middle East, the BBC reported, broadcasting Express.
Prices rose by 3.5% in the year by June, according to the Labour Statistics Bureau (BLS), up from 4.2% registered in May, which was a greater decline than experts expected.
However, the new US military attacks on Iran this week triggered repeated increases in oil prices, at the cost of a crude Brent oil barrel, the global standard, which increased by $10 within 24 hours, reaching $84.
Kevin Wars, head of the Federal Reserve, said the central bank “had no tolerance for the ongoing inflation established”.
He told Congress at his first appearance before the House of Representatives Financial Services Committee on Tuesday that he was committed to “establishing the stability of prices” following the impact of the Middle East conflict on prices.
“Inflation is a” choice, he claimed. “We, monetary policymakers, we have to choose lower prices and this is the commitment my colleagues have taken.”
Analysts have suggested that inflation may increase in the coming months, which may mean the Federal Reserve decides to maintain interest rates at the current level or increase them.
“Energy prices dropped significantly due to the ceasefire with Iran and memorandum of understanding (MOU)”, said Scott Anderson, chief American economist at BMO Capital Markets.
