The overall rate of inflation in the United States remained stable in the latest reporting period. July saw prices in the United States increase by 2.7 percent compared to the same period last year, according to data released Tuesday by the relevant statistical agency. Month-over-month, prices rose by 0.2 percent.
In June, the Consumer Price Index had also shown a year-over-year increase of 2.7 percent. So-called core inflation, which excludes volatile energy and food prices, was 3.1 percent in July, up from 2.9 percent the previous month.
Energy prices decreased by 1.6 percent year-over-year, following a 0.8 percent decline in June. Food prices increased by 2.9 percent over the year (June: 3.0 percent).
Investors are closely monitoring U.S. inflation data, as easing price pressures could prompt the Federal Reserve to lower interest rates. High interest rates are generally considered detrimental to both the stock market and the real estate market, in part because they make bank accounts a more attractive investment alternative. The trade policies of U.S. President Donald Trump are widely expected by analysts to contribute to rising prices.
