US Inflation Hits Two-Year Low, Boosting Stocks and Precious Metals

On Wednesday, July 12, 2023, the U.S. Bureau of Labor Statistics released the Consumer Price Index study for June, showing a 3% summation successful inflation, the lowest level since March 2021. The U.S. ostentation complaint has fallen for 12 consecutive months, with the scale rising 0.2% connected a monthly basis.

Labor Department’s CPI Data Shows 3% Inflation Rate for June

Inflation successful the United States continues to cool, according to the latest Consumer Price Index study from the U.S. Bureau of Labor Statistics released Wednesday. Inflation has fallen consecutively each period since June 2022. The ostentation complaint successful June 2022 was 9.1%, but the latest CPI statistic amusement it has dropped to 3%.

“The Consumer Price Index for All Urban Consumers (CPI-U) roseate 0.2 percent successful June connected a seasonally adjusted basis, aft expanding 0.1 percent successful May,” the CPI study details. “Over the past 12 months, the each items scale accrued 3.0 percent earlier seasonal adjustment.”

Stocks performed good aft the quality Wednesday, with the S&P 500, Dow Jones Industrial Average, Nasdaq Composite, and Russell 2000 each closing successful affirmative territory. The S&P 500 roseate 0.74%, the Russell 2000 jumped 1.05%, the Nasdaq accrued by 1.15%, and the Dow, portion the lowest, inactive gained 0.25%. The CPI study is credited with boosting Wall Street’s sentiment.

Gold and metallic besides saw gains connected July 12, with golden rising 1.3% and metallic expanding 4.13%. The planetary cryptocurrency market capitalization fell 0.77% implicit the past day, dropping to $1.18 trillion. Bitcoin mislaid 0.61% successful the past 24 hours, and Ethereum shed 0.25% against the U.S. dollar. Both starring crypto assets remained rangebound and had shown lackluster show connected Wednesday.

“There has been important advancement made connected the ostentation front, and today’s study confirmed that portion astir of the state is dealing with hotter temperatures outside, ostentation is yet cooling,” George Mateyo, main concern serviceman astatine Key Private Bank told CNBC connected Wednesday.

Biden Celebrates Cooling Inflation, But Critics Question the Real Impact connected Middle Class

Following the report, U.S. president Joe Biden and the White House were speedy to instrumentality recognition for the falling ostentation figures. “Today, we learned yearly ostentation has fallen 12 consecutive months to 3% – the lowest successful implicit 2 years,” Biden tweeted. “I ran for bureau to turn the system from the mediate retired and bottommost up, not the apical down: that’s precisely what we’re doing. Bidenomics successful action.”

Not everyone was impressed with Biden’s tweet connected Wednesday. “Everyone spending 5 minutes successful a market store knows this fig is simply a prevarication and manipulated,” 1 idiosyncratic replied to Biden. “Inflation is mode implicit 20%.” Another idiosyncratic said: “Bidenomics successful enactment is our families not being capable to spend food, gas, oregon different necessities. Bidenomics has breached the backmost of the mediate class.”

What has been your idiosyncratic acquisition with ostentation implicit the past year? Do you consciousness the authoritative figures bespeak your day-to-day reality? Share your thoughts and opinions astir this taxable successful the comments conception below.