On July 2020, the rate of inflation in the United States recorded for a year was 1.0%. On, August 12th, 2020, the U.S Labor Department said the earlier figure was 0.6%.
The next time the update for the inflation rate in the United States will be released is on September 11th, 2020. This will state the current inflation rate for the period that ended in August 2020.
What do you mean by Inflation rate?
The percentage at which a currency is deprecated during a period. During the devaluation period, the consumer price index (CPI) increases.
By using 12-month CPI or Consumer Price Index selections, inflation is calculated and the statistical data obtained is made available for everyone by the Labor Department’s Bureau of Labor Statistics (BLS). The inflation calculator helps in assessing the percentage of inflation.
Causes of Inflation in the Market-
There are several causes behind the rise in current Inflation rate in the US. The rate of inflation depends on the balance that exists between demand and supply within the economy as an aggregate. Conditions in the labor market play an instrumental role in determining the inflation rate. Unemployment means that there is a decrease in the workforce. In terms of a layman, there is a price rise for most of the commodities when there is inflation.
There are numerous methods of controlling inflation, which have both positive and negative effects. Such methods include, inflation control through wage or price controls that can give rise to recession and unemployment.
As the world is trying to wriggle out of the clutches of the pandemic, economies around the world are dwindling and in deep crises and uncertainty. What remains to see is when the economies around the globe will return to its normal course again. Hopefully, the value of money will improve. Even in this dreadful situation of pandemic one can plan to invest in stocks as well.