Inflation in US: Inflation in America fell more than expected and it remained at three percent last month. This is the third consecutive month when the inflation rate has softened. This information has been received from government data. This indicates that the rapid increase in inflation in four decades is now coming under control and with this the US central bank Federal Reserve may take steps to cut the policy rate in the coming days. According to official data, inflation has come down by 0.1 percent in June as compared to May. On an annual basis, inflation stood at three percent last month, which was 3.3 percent in May.
Inflation coming closer to the target of the Federal Reserve
With the latest inflation data, the Federal Reserve may agree that inflation is coming in line with the target of two percent. According to the data, although inflation has softened, inflation of essential items like food items, rent, health care remains higher than before the pandemic. Now it remains to be seen how the Federal Reserve reacts to this inflation rate.
Reaction can be seen in the stock market
Lower than expected inflation figures in the US are positive news for the stock market. The market can react to this on Friday. Especially IT stocks can see a rise.
