BlockBeats report: On August 26, the U.S. annual inflation rate for July unexpectedly held steady, marking the 65th consecutive month significantly above the Federal Reserve’s 2% target. The recent decline in inflation, which had risen due to the Iran conflict, has stalled, potentially intensifying internal Fed debates over whether to raise rates or hold them steady. Data released Wednesday by the U.S. Bureau of Economic Analysis showed that the Fed’s preferred measure, the July PCE price index, rose 3.7% year-over-year, unchanged from June and above the 3.6% forecast by analysts. As trade negotiations between the U.S. and its second-largest trading partner, Canada, collapsed on Friday, new inflationary pressures triggered by tariffs may be on the horizon.
On a monthly basis, the PCE price index rose 0.2% in July, also exceeding economists' expectations. In June, the index had declined 0.1%, marking the lowest level since April 2020. The U.S. Bureau of Economic Analysis also updated its data on second-quarter economic growth, maintaining the annualized growth rate of U.S. real GDP for the second quarter at 1.5%. (Jin10)