Inflation In the United States is at it's Lowest Since 2021
Americans are relieved that inflation has hit its lowest point since 2021. Low inflation not only increases an individual's purchasing power (the number of goods and services they can afford with a certain amount of money) but also incentivizes the Fed to lower interest rates. The current inflation rate is between 3 and 4% and was approximately 3.1% in March 2021. The Consumer Price Index (which tracks the average amount individuals spend on goods and services) increased by 3% in June. That is a huge improvement from June 2022, when the inflation rate was close to 9%, and gasoline prices were approximately five dollars a gallon. In order to combat high inflation, the Fed must raise interest rates. However, the Fed may still raise interest rates to a 22-year high in the July 25th to 26th meeting because economic activity hasn't decreased significantly. But the chances of this happening are quite slim, given how low the inflation rate is at the moment. Al...