US inflation eases after 41-year high, US stocks rally

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Wall Street rallies as cooling inflation eases interest rate hike fears. The Australian dollar surges to 71 US cents as the greenback falls.

US consumer inflation has eased thanks to a sharp fall in the cost of petrol, sending US stocks higher.The Dow Jones index rose 1.6pc to 33,310, the S&P 500 rose 2.1pc to 4,210, and the Nasdaq rose 2.9pc to 12,855

The Consumer Price Index was flat in July after rising by 1.3 per cent in June, when prices reached an annual rate of 9.1 per cent — the highest in 41 years. The US central bank, the Federal Reserve, is considering whether to make another large interest rate increase of 0.75 per cent in September, after a string of rate rises this year.

Gasoline prices fell 7.7 per cent in July, but food prices remained elevated, climbing by 1.1 per cent. US consumer prices have surged for a variety of reasons including the global supply-chain squeeze, massive government stimulus from the COVID-19 pandemic, and Russia's invasion of Ukraine. "This is not yet the meaningful decline in inflation the Fed is looking for," Paul Ashworth from Capital Economics said.

 

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Calm before the storm.

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Leftard ABC 🤡🌏 parroting Biden. 'Inflation at 0%'

ABC News is code for Democrat report

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