Inflation has Fallen for the First time in Two Years
Consumer spending also edged up 0.1% in the month of July...
Consumer spending in the United States rose a measly 0.1% in the month of July as gas prices continue to drop leading to less spending at the gas pump. Monthly inflation as a whole has also slowed down which is a hopeful measure for the Fed to scale back on the current aggressive interest rate hikes.
A gain in personal income was also shown in the report last month as well which could help consumer spending and continue to push the economy to a thriving point. Fed officials will love the news of slowing inflation. Jerome Powell is set today to address the news along with the possibility of giving me insight as to what the next steps of the Federal Reserve are.
Average gas prices throughout the United States have dropped to about $4.27.gal after hitting an all-time high of just above $5 in the month of June. As a whole, spending on goods fell 0.2% which offsets a 0.3% rise in spending on services.