On Wednesday, July 12, 2023, the U.S. Bureau of Labor Statistics released the Consumer Price Index report for June, showing a 3% increase in inflation, the lowest level since March 2021. The U.S. inflation rate has fallen for 12 consecutive months, with the index rising 0.2% on a monthly basis.
Labor Department’s CPI Data Shows 3% Inflation Rate for June
Inflation in the United States continues to cool, according to the latest Consumer Price Index report from the U.S. Bureau of Labor Statistics released Wednesday. Inflation has fallen consecutively each month since June 2022. The inflation rate in June 2022 was 9.1%, but the latest CPI statistics show it has dropped to 3%.
“The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2 percent in June on a seasonally adjusted basis, after increasing 0.1 percent in May,” the CPI report details. “Over the last 12 months, the all items index increased 3.0 percent before seasonal adjustment.”
Stocks performed well after the news Wednesday, with the S&P 500, Dow Jones Industrial Average, Nasdaq Composite, and Russell 2000 all closing in positive territory. The S&P 500 rose 0.74%, the Russell 2000 jumped 1.05%, the Nasdaq increased by 1.15%, and the Dow, while the lowest, still gained 0.25%. The CPI report is credited with boosting Wall Street’s sentiment.
Gold and silver also saw gains on July 12, with gold rising 1.3% and silver increasing 4.13%. The global cryptocurrency market capitalization fell 0.77% over the last day, dropping to $1.18 trillion. Bitcoin lost 0.61% in the past 24 hours, and Ethereum shed 0.25% against the U.S. dollar. Both leading crypto assets remained rangebound and had shown lackluster performance on Wednesday.
“There has been significant progress made on the inflation front, and today’s report confirmed that while most of the country is dealing with hotter temperatures outside, inflation is finally cooling,” George Mateyo, chief investment officer at Key Private Bank told CNBC on Wednesday.
Biden Celebrates Cooling Inflation, But Critics Question the Real Impact on Middle Class
Following the report, U.S. president Joe Biden and the White House were quick to take credit for the falling inflation figures. “Today, we learned annual inflation has fallen 12 straight months to 3% – the lowest in over two years,” Biden tweeted. “I ran for office to grow the economy from the middle out and bottom up, not the top down: that’s exactly what we’re doing. Bidenomics in action.”
Not everyone was impressed with Biden’s tweet on Wednesday. “Everyone spending 5 minutes in a grocery store knows this number is a lie and manipulated,” one user replied to Biden. “Inflation is way over 20%.” Another individual said: “Bidenomics in action is our families not being able to afford food, gas, or other necessities. Bidenomics has broken the back of the middle class.”
What has been your personal experience with inflation over the past year? Do you feel the official figures reflect your day-to-day reality? Share your thoughts and opinions about this subject in the comments section below.