ccording to the Department of Labor's consumer price index report, inflation in the United States fell to 8.5% in July, down from 9.1% the previous year.
This revelation surprised many in the Biden Administration, who had anticipated that inflation would be a factor due to factors such as price increases and the Ukraine-Russian war.
"We learned today that our economy experienced zero percent inflation in July." "Not at all," Biden said at the White House.
Crypto increases in value
Most cryptocurrencies fell on July 9 in anticipation of the report, with bitcoin falling about 4% to $23,100 and Ethereum (ETH) falling more than 5%. However, prices have recovered, with bitcoin trading above $24,500 and Ethereum trading slightly below $1,900 at the time of publication.
Biden wants to reduce inflation
President Joe Biden responded to the report by emphasizing that the current approach to reducing inflation is working and that Congress must pass the Inflation Reduction Act.
"The economic plan is working, and the second is building an economy that rewards work," Biden said at a White House press conference.
While inflation has been rising, it has been reported that GDP fell in the first two quarters of 2022, indicating that the economy was truly priced. According to the report, energy costs fell 4.6% in July, despite continuing to rise in 2021, reaching 32.9%. Gasoline prices fell 7.7% month over month, giving drivers some relief, but they were still 44% higher than a year ago.
According to experts, food expenses increased by 1.1% month over month and 10.9% year over year, the largest increase since May 1979.
Those who follow inflation and monetary policy trends have had mixed reactions to the data. The prospect of US interest rates not rising as quickly as previously anticipated weighed on the dollar, which fell more than 1% against a basket of major trading partners' currencies, according to the New York Times.