Following roughly 18 months of prices rising at unprecedented rates, inflation remains stubbornly high in both the United States and the Eurozone. The U.S. Federal Reserve and the European Central Bank (ECB) have sought to aggressively increase interest rates in order to tighten the global money supply and bring prices under control.
These moves started to have an effect on inflation in the United States by mid-summer, although consumers' economic outlook was generally pessimistic. In July, following the Federal Reserve's decision to raise rates by 75 basis points (bps), the consumer price index experienced its first month of negative growth since May 2020. For consumers, this marked the first time in 26 months that goods, in general, did not cost more than they had the month before.
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