Inflation is at highs not seen in decades in the United States, but there are signs it's starting to cool off.
For the first time in over two years, the U.S producer price index in fell in July from a month earlier by half-a-percent.
And a day earlier, the consumer price index showed prices had not not gone up at all from June to July.
Lee Ji-yoon reports.
Another sign of easing inflation in the U.S.
The U.S. Labor Department released the Producer Price Index for July on Thursday.
The index, which measures prices that businesses pay for their goods and services, rose last month but not as much as expected.
Wholesale prices rose 9.8 percent in July compared to the same month last year. while falling half a percent from a month earlier.
This was the first time the index fell since April of 2020 coming on the heels of Wednesday's report showing eased inflation for some consumer prices in July.
Latest numbers tell us that although prices are still elevated the country is starting to see some pricing pressures ease.
The big drop in energy and gasoline prices played a big part as supply chains are finally starting to loosen up.
So now, eyes are on what these two major data points would mean for the Federal Reserve.
Experts believe these reports show the Fed that the economy is moving in the right direction and that maybe the Fed won't have to move as big as it wanted to in order to ease inflation.
The talk in town was that the Fed might raise rates by three-quarters of a percentage point at the end of September.
But now, many more investors are expecting a half point or possibly a quarter point rise.
As for the health of the U.S. labor marketthe weekly jobless report showed 2-hundred-62-thousand people applied for unemployment claims last week
rising for the second straight week.
It's the highest level since last November but still at historically low levels.
Last week, the U.S. economy added more than 5-hundred-thousand jobs.. offering about two jobs for every American job seeker.
Lee Ji-yoon Arirang News.