Inflation rises for the first time in 12 months—but it’s not as bad as it looks
Publishing timestamp: 2023-08-10 08:43:49
Summary
The year-over-year inflation rate has risen from 3% to 3.2%, still above the Federal Reserve's target of 2%. However, the increase is partly due to the way energy costs are accounted for in the report. Rising oil prices and housing costs have contributed to the inflation rate, but recent energy price increases are expected to have a cooling effect on core inflation in future reports. The Federal Reserve looks to core inflation, which excludes volatile food and energy prices, to get a better sense of where inflation is headed. The Fed has enacted interest rate hikes to combat inflation, and interest rates are expected to remain near 4% through 2024. Borrowing money, such as credit card interest and auto loans, is not expected to become cheaper in the near future. The Fed is committed to bringing inflation down to 2% over time and has not ruled out further rate hikes.
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Keywords: pnc financial services group inc, prices, jerome powell,
Source: https://www.cnbc.com/2023/08/10/cpi-inflation-rate-july-2023.html