JULY 18, 2022 – INFLATION KEEPS CLIMBING
US inflation rose again last month hitting a 41-year high of 9.1 percent, up from 8.6 percent last month. The primary drivers were gasoline, shelter and food. Analysts are now debating whether the Fed will raise rates at their next meeting by 1 percent, rather than the 0.75 percent that was expected.
The Fed’s goal is controlling inflation by restoring price stability in an economy wrought with supply chain issues, but they want to try and avoid bringing on a recession. Some analysts are optimistic that inflation could fall in the upcoming months as a result of declining world-wide growth that have led to lower commodity prices.
Fed Chair Powell has said he will need to see clear evidence price pressures are diminishing before slowing or stopping rate increases. This month’s rate hike is a certainty, the question is just by how much.