Inflation Rate measures the change in the level of prices for goods and services and is released on a monthly basis by the US Bureau of Labor Statistics. Extreme ranges for the inflation, both rising and falling are in general not positive for the economy, and there is a target of inflation of 2.0% set by the Federal Reserve Bank, which is closely monitored. As high inflation rates have negative results in the real purchasing power of the consumers, at the same time they are positive in the long-run for the currencies as in order to fight inflation, the central banks will have to raise interest rates. The Federal Reserve Bank main focus is on core inflation data, which excluded the price changes of food and energy as these are considered volatile. Excluding those prices makes the core inflation data a more representative one about the general level of goods and services.
The United States Inflation Rate
The Unites States Inflation Rate is 1.6% for the 12 months ended June 2017, lower than the previous reading of 1.9%, and the consensus reading of 1.7%. This is the lowest level of Inflation Rate since October of 2016. Historically the United States Inflation Rate has a long-term average of 3.28% for the periods of 1914-2017. The all-time high price for the Inflation rate was 23.70% during the month of June in 1920, and the all-time low reading for the Inflation Rate was -15.80% in June of 1921. The low reading of the Inflation Rate is negative for the US Dollar, as the Fed has now weak arguments in favor or rising further the interest rates to fight the inflation.
