That means, on average, the prices of goods and services are 1.65% higher than they were a year ago.🚀🚀🚀
Here's a breakdown of what that means in the context of the U.S. economy:
* Below the Target: The Federal Reserve (the U.S. central bank) typically aims for an annual inflation rate of around 2%. A rate of 1.65% is below this target, which could suggest that the economy is growing at a slower pace than desired.
* Purchasing Power: For consumers, this means that your money has slightly less purchasing power than it did last year. An item that cost $100 a year ago would now cost, on average, $101.65.
* Economic Impact: A low inflation rate like this can have different interpretations. It could be seen as a sign of a stable economy where prices are not rising too quickly. However, if inflation drops too low or becomes negative (deflation), it can be a concern for policymakers as it can lead to people delaying purchases in anticipation of even lower prices, which can harm economic growth.#RateCutExpectations
