Some good news appears to have emerged for Americans, as, according to recent numbers that have been made public, the US inflation rate, after a series of surprise ups at the beginning of 2024, has eased by 0.1 per cent. The consumer inflation rate for May stood at 3.3 per cent. The rate stood at 3.4 per cent in April.
US Inflation Drops
This was again a drop from the 3.5 per cent CI rate in the month of March.
Despite this, it should be noted that the country's central banking system, the US Federal Reserve, in its announcement later in the day on Wednesday, decided to retain the interest rate.
This development came to pass after the Federal Open Market Committee meeting headed by Fed Chair Jerome Powell ended on June 12. The interest rate stands at 5.25 - 5.50 per cent.
When we focus on the inflation numbers alone, this decline in them is being attributed to the drop in fuel prices in the country. In the United States, the average rate of fuel or gasoline, is USD 3.454 per gallon. This is lower than the rate of fuel from a month ago, when a gallon of gasoline was worth USD 3.619.
Drop in fuel prices has also percolated into other avenues, such as car insurance and other transportation prices have also dropped. In the greater economic cycle, this has aided other facets of consumption, thereby easing the overall inflation rate. | Representational Pic
Drop in Car Insurance Prices
In this regard, California has the highest average rate among states, with USD 4.888 for a gallon. The state of Colorado has the lowest, at USD 3.297.
This has also percolated into other avenues, such as car insurance and other transportation prices have also dropped. In the greater economic cycle, this has aided other facets of consumption, thereby easing the overall inflation rate.
In addition, there was another economic development that could have contributed to the drop in the inflation rate. Recently, the US released its jobs data, and the country managed to create more jobs than expected, thereby inducing capital into the system by empowering primary consumers, and thereby subsequent expenditure.
