US inflation remains elevated amid supply constraints

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Washington– US inflation remained elevated in July and there were signs that it might have peaked amid Covid-19 pandemic-related supply constraints and the emergence of the Delta variant.

The consumer price index (CPI) increased 0.5 per cent in July after rising 0.9 percent in June, the Labour Department said on Wednesday.

Over the past 12 months through July, the index increased 5.4 per cent, the same increase as the period ending June and the largest 12-month increase since 2008, reports xinhua news agency.

Excluding the volatile food and energy components, the so-called core CPI rose 0.3 per cent last month after increasing 0.9 per cent in June, according to the Department.

Compared with a year earlier, the core CPI rose 4.3 per cent in July, slower than 4.5 per cent in June.

The Federal Reserve has pledged to keep its benchmark interest rate unchanged at the record-low level of near zero, while continuing its asset purchase program at least at the current pace of $120 billion per month until “substantial further progress” has been made on employment and inflation.(IANS)

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