Lower oil prices pulls down July 2022 US consumer inflation to 8.5%

It appears like the unrelenting hawkishness of the US Federal Reserve, coupled with the unswerving commitment of Jerome Powell to price stability, is finally paying off.

August 11, 2022 7:40 IST | India Infoline News Service
The YOY inflation came down by 60 bps in July 2022 to 8.50% compared to the 41-year high of 9.1% in June 2022. The pre-inflation surveys had already hinted at tapering of inflation and the first signals are evident in the July inflation figure.

US Consumer Inflation has been on a sharp uptrend as evinced in the chart below. The US economy had reported consumer inflation at 7.9% in February 2022, 8.5% in March 2022, 8.3% in April 2022, 8.6% in May 2022 and 9.1% in June 2022. For a change, the consumer inflation in July 2022 tapered by 60 bps to 8.5%, as an outcome of hawkish measures.