The U.S. Labor Department published its annual inflation rate today for the 12-months ending in July 2020. The Annual Inflation rate is 1.0%, up from 0.6% last month, and 0.1% in May – the lowest inflation rate since the Covid Pandemic. This brings the 20-year average inflation rate to 2.1%.
So far during this pandemic, we have not experienced any deflation where the rate turns negative; the times that has happened in the past 20 years was in 2009 and 2015 and is a sign of an uncertain and slowing economy.
Yesterday, the Federal Reserve said it would reduce the interest rate it charges cities and states seeking short-term loans. They have also broadened their lending program to more than 300 cities.
