U.S. Inflation Remains Sticky in July, Q2 GDP Growth Maintains at 1.5%

BlockBeats News, August 26th, the US July inflation rate unexpectedly remained unchanged, marking the 65th consecutive month significantly above the Federal Reserve's 2% target. Due to the impact of the Iran war, the recent decline in inflation rate after reaching a high has stalled, potentially intensifying internal debates within the Fed on whether to raise interest rates or maintain them. Data released by the US Commerce Department's Bureau of Economic Analysis on Wednesday showed that the Fed's favored indicator, the US July PCE Price Index year-on-year, stood at 3.7%, unchanged from June, in line with analysts' expectations of 3.6%. With the collapse of the trade negotiations between the US and its second-largest trading partner Canada on Friday, a new round of tariff-induced inflation pressure may be imminent.

On a month-on-month basis, the PCE Price Index rose by 0.2% in July, also higher than economists' expectations. In June, the index had declined by 0.1% month-on-month, the lowest level since April 2020. The US Bureau of Economic Analysis also updated second-quarter economic growth data, keeping the annualized GDP growth rate for the US second quarter unchanged at 1.5%. (FXStreet)