As the US considers lifting some tariffs on Chinese goods, President Joe Biden said he would be speaking to President Xi Jinping.

"I plan on having a conversation with President Xi. We haven't set a time yet," the US president said.

Former US President Donald Trump had imposed &nbsp;25 per cent tariffs on Chinese goods over alleged Chinese unfair trade practices and to protect&nbsp;US manufacturers.

President Biden had last spoken to Xi in March amid the Russian invasion of Ukraine warning the Chinese president against assisting Russia.

<a href="https://www.wionews.com/business-economy/crypto-industry-fears-contagion-as-bitcoin-slips-under-20000-490041">Also Read:&nbsp;Crypto industry fears contagion as bitcoin slips under $20,000</a>

Biden's comments&nbsp;come&nbsp;as the US battles historic inflation amid reports of an impending recession. Treasury Secretary Janet Yellen had asserted that recession is not "inevitable" while conceding that the economy may slow down&nbsp;saying that "clearly inflation is unacceptably high".

Yellen had told US lawmakers that the Biden administration would provide more information on the tariff plans as the country battles an economic crisis with high inflation and rising fuel prices.

Watch:&nbsp;Gasoline tax holiday proposed to curb inflation in US

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The US Federal Reserve had raised interest rates in an attempt to combat inflation, however, Wall Street stocks tanked over fears of recession. On Tuesday, US stocks bounced back as the Dow Jones Industrial Average rose 2.2 per cent to close at 30,530.25.

Goldman Sachs analysts said there was a 48 per cent chance of a recession over the next two years even as the US Federal Reserve announced a historic 0.75 percentage point hike last week which was the biggest increase since November 1994.

(With inputs from Agencies)

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As the US considers lifting some tariffs on Chinese goods, President Joe Biden said he would be speaking to President Xi Jinping. "I plan on having a conversation with President Xi.

As the US considers lifting some tariffs on Chinese goods, President Joe Biden said he would be speaking to President Xi Jinping. "I plan on having a conversation with President Xi. We haven't set a time yet," the US president said. Former US President Donald Trump had imposed 25 per cent tariffs on Chinese goods over alleged Chinese unfair trade practices and to protect US manufacturers. President Biden had last spoken to Xi in March amid the Russian invasion of Ukraine warning the Chinese president against assisting Russia. Also Read: Crypto industry fears contagion as bitcoin slips under $20,000 Biden's comments come as the US battles historic inflation amid reports of an impending recession. Treasury Secretary Janet Yellen had asserted that recession is not "inevitable" while conceding that the economy may slow down saying that "clearly inflation is unacceptably high". Yellen had told US lawmakers that the Biden administration would provide more information on the tariff plans as the country battles an economic crisis with high inflation and rising fuel prices. Watch: Gasoline tax holiday proposed to curb inflation in US The US Federal Reserve had raised interest rates in an attempt to combat inflation, however, Wall Street stocks tanked over fears of recession. On Tuesday, US stocks bounced back as the Dow Jones Industrial Average rose 2.2 per cent to close at 30,530.25. Goldman Sachs analysts said there was a 48 per cent chance of a recession over the next two years even as the US Federal Reserve announced a historic 0.75 percentage point hike last week which was the biggest increase since November 1994. (With inputs from Agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

I plan on having a conversation with President Xi, says Biden over tariffs on Chinese goods

Just days after the US Federal Reserve hiked interest rates, Treasury Secretary Janet Yellen said on Sunday (June 19) that recession in the United States is not "inevitable."

Raising fears of an economic contraction, Yellen conceded that "clearly inflation is unacceptably high."

Attributing it partly to the war in Ukraine, she said she did not believe that "a dropoff in consumer spending is the likely cause of a recession."

Predicting that the pace of inflation would slow in coming months, Yellen argued that the US labor market is "arguably the strongest of the postwar period."

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Soaring inflation and supply-chain snarls exacerbated by the war in Ukraine have increased pessimism after the US economy has recovered strongly from the damage wrought by Covid-19.&nbsp;

According to Yellen, President Joe Biden was reviewing some tariffs imposed on China by former President Donald Trump that made "no strategic sense."

After the US central bank on Wednesday raised the benchmark borrowing rate by 0.75 percentage points, Wall Street stocks tumbled.

With people beginning to hold off on vacation plans, economists see worrying signs that consumer confidence is weakening.

Adobe Analytics reported people are beginning to hold off on vacation plans domestic flight bookings were down 2.3 percent last month.

(With inputs from agencies)

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Just days after the US Federal Reserve hiked interest rates, Treasury Secretary Janet Yellen said on Sunday (June 19) that recession in the United States is not "inevitable.

Just days after the US Federal Reserve hiked interest rates, Treasury Secretary Janet Yellen said on Sunday (June 19) that recession in the United States is not "inevitable." Raising fears of an economic contraction, Yellen conceded that "clearly inflation is unacceptably high." Attributing it partly to the war in Ukraine, she said she did not believe that "a dropoff in consumer spending is the likely cause of a recession." Predicting that the pace of inflation would slow in coming months, Yellen argued that the US labor market is "arguably the strongest of the postwar period." × Soaring inflation and supply-chain snarls exacerbated by the war in Ukraine have increased pessimism after the US economy has recovered strongly from the damage wrought by Covid-19. According to Yellen, President Joe Biden was reviewing some tariffs imposed on China by former President Donald Trump that made "no strategic sense." After the US central bank on Wednesday raised the benchmark borrowing rate by 0.75 percentage points, Wall Street stocks tumbled. With people beginning to hold off on vacation plans, economists see worrying signs that consumer confidence is weakening. Adobe Analytics reported people are beginning to hold off on vacation plans domestic flight bookings were down 2.3 percent last month. (With inputs from agencies) Watch WION's live TV:

Treasury Secretary Janet Yellen says US recession not 'inevitable'

As millions of American employees return to their offices after working from home for almost two years, they are being greeted by high prices on almost every items.

Food, commuting, rising gas prices and soaring inflation are putting a severe dent into the worker’s pockets, making it difficult to go back to the office. What makes this journey even more excruciating is that their daily expenses aren’t keeping up with their earnings, reports CNN.

According to the Labor Department, food prices shot by up 9.4 per cent in April —the biggest jump since April 1981. And grocery store prices increased 10.8 per cent for the year ended in April.

Office workers are seeing higher costs on everything— from their morning coffee to their lunchtime salad.

For example, Starbucks raised prices in the US earlier this year and in October 2021 and added that the prices could go even higher.

Salad chain Sweetgreen has raised its menu prices by 10% since the start of 2021, the company said in its most recent earnings report.

Similar trends are being witnessed across restaurants and other companies in the US that have raised menu prices due to global inflation.&nbsp;

Experts are calling this phenomenon “Lunchflation”.

CNN&nbsp;gathered public opinion where several people agreed that work-related expenses were quite real.&nbsp;

"Lunchflation is 100% real, everything is more expensive," Kelly Yau McClay, who lives in Potomac, Maryland, told CNN.

But for some, returning to the workplace have bright a slight relief. The pandemic has altered the spending habits of millions of Americans with expenses on dining out being replaced with high grocery bills and home-cooked meals.

Sara Hill, who works in the insurance industry in Buffalo, New York, noticed that her grocery saw her food budget increase when she and her four children were home full-time.

"I was eating more food because I am closer to the kitchen... my food spending was still increasing because we were all home," said Hill.

(With inputs from agencies)

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As millions of American employees return to their offices after working from home for almost two years, they are being greeted by high prices on almost every items.

As millions of American employees return to their offices after working from home for almost two years, they are being greeted by high prices on almost every items. Food, commuting, rising gas prices and soaring inflation are putting a severe dent into the worker’s pockets, making it difficult to go back to the office. What makes this journey even more excruciating is that their daily expenses aren’t keeping up with their earnings, reports CNN. According to the Labor Department, food prices shot by up 9.4 per cent in April —the biggest jump since April 1981. And grocery store prices increased 10.8 per cent for the year ended in April. Office workers are seeing higher costs on everything— from their morning coffee to their lunchtime salad. For example, Starbucks raised prices in the US earlier this year and in October 2021 and added that the prices could go even higher. Salad chain Sweetgreen has raised its menu prices by 10% since the start of 2021, the company said in its most recent earnings report. Similar trends are being witnessed across restaurants and other companies in the US that have raised menu prices due to global inflation. Experts are calling this phenomenon “Lunchflation”. CNN gathered public opinion where several people agreed that work-related expenses were quite real. "Lunchflation is 100% real, everything is more expensive," Kelly Yau McClay, who lives in Potomac, Maryland, told CNN. But for some, returning to the workplace have bright a slight relief. The pandemic has altered the spending habits of millions of Americans with expenses on dining out being replaced with high grocery bills and home-cooked meals. Sara Hill, who works in the insurance industry in Buffalo, New York, noticed that her grocery saw her food budget increase when she and her four children were home full-time. "I was eating more food because I am closer to the kitchen... my food spending was still increasing because we were all home," said Hill. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Now, American workers have a new headache. It’s called ‘Lunchflation’

US stocks ended sharply lower yesterday, with the Nasdaq dropping more than three percent and the Dow falling for a fifth straight day after U.S. inflation data did little to ease investor worries over the outlook for interest rates and the economy of the largest country in the world.

Nasdaq falls more than 3% as US inflation gives small relief to investors

As the US stocks rebounded after a rout on Monday, President Biden declared that battling inflation will be his "top domestic priority".

In a surprise move, the US president said he is "discussing"&nbsp;an end to China's trade tariffs but hasn't reached any decision yet.

"We're discussing that right now," Biden said on lifting trade tariffs against China.

On Tuesday, US WTI oil fell below $100 per barrel amid fears of a slowdown in the global economy.

<a href="https://www.wionews.com/world/uks-convenience-store-chain-mccolls-goes-bust-due-to-inflation-1100-stores-and-16000-jobs-at-risk-476913">Also Read:&nbsp;UK's convenience store chain McColl's goes bust due to inflation</a>

The US has witnessed the highest inflation in decades as several sectors face a shortage of workers. The US Fed's policy committee had&nbsp;last week raised the key rate by a half point even as Wall Street stocks took a battering on Monday.

Bitcoin fell under $30,000 to reach a ten-month low as the cryptocurrency continued to lose its value. The US Federal Reserve official had said earlier that it would work to bring down "unacceptably high" inflation.

Watch:&nbsp;Workers in Europe urge for more as inflation bites

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Central banks in the UK and Australia had also increased interest rates as data showed China's export had slowed to its weakest in nearly two years.

According to reports, consumer debts and credit rose 1.7 per cent in the US amid housing debt and zooming inflation and rates.

Student loans had also climbed to $14 billion in the first quarter of the year as consumer price inflation touched 8.5 per cent.

(With inputs from Agencies)

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As the US stocks rebounded after a rout on Monday, President Biden declared that battling inflation will be his "top domestic priority". In a surprise move, the US president said he is "discussing" an end to China's trade tariffs but hasn't reached any decision yet.

As the US stocks rebounded after a rout on Monday, President Biden declared that battling inflation will be his "top domestic priority". In a surprise move, the US president said he is "discussing" an end to China's trade tariffs but hasn't reached any decision yet. "We're discussing that right now," Biden said on lifting trade tariffs against China. On Tuesday, US WTI oil fell below $100 per barrel amid fears of a slowdown in the global economy. Also Read: UK's convenience store chain McColl's goes bust due to inflation The US has witnessed the highest inflation in decades as several sectors face a shortage of workers. The US Fed's policy committee had last week raised the key rate by a half point even as Wall Street stocks took a battering on Monday. Bitcoin fell under $30,000 to reach a ten-month low as the cryptocurrency continued to lose its value. The US Federal Reserve official had said earlier that it would work to bring down "unacceptably high" inflation. Watch: Workers in Europe urge for more as inflation bites Central banks in the UK and Australia had also increased interest rates as data showed China's export had slowed to its weakest in nearly two years. According to reports, consumer debts and credit rose 1.7 per cent in the US amid housing debt and zooming inflation and rates. Student loans had also climbed to $14 billion in the first quarter of the year as consumer price inflation touched 8.5 per cent. (With inputs from Agencies) WATCH WION LIVE HERE

Biden sets inflation agenda; discusses end to China tariffs

Last month, inflation in the US hit its highest level in over 40 years, with a 7% increase over the previous year.&nbsp;

This is driving up household costs, eroding wage growth, and putting pressure on President Joe Biden and the Federal Reserve to confront what has become the largest threat to the US economy.&nbsp;

This is the greatest growth since June 1982, and it surpasses the 6.8% increase in November.&nbsp;

As part of a quick rebound from the pandemic recession, prices for vehicles, petrol, food, and furniture increased dramatically in 2021.

Government cash injections and ultra-low loan rates boosted demand for commodities, while vaccinations gave people the confidence to eat out and travel.

As Americans increased their spending, supply networks were constrained by labour and raw material shortages, exacerbating pricing pressures. 
 
Watch | US inflation at nearly 40-year high

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The Labor Department reports that a measure of inflation that excludes volatile food and gas prices increased by 5.5 percent in December, the highest level in decades.

Inflation increased by 0.5 percent in November, compared to 0.8 per cent the previous month.&nbsp;

Inflation isn't just a concern in the United States.

In December, inflation in the 19 European countries that use the euro currency increased by 5% over the previous year, the highest increase on record.

Companies of all sizes are adapting to the best of their abilities.&nbsp;

Businesses trying to employ have increased wages, but rising prices for goods and services have undermined many Americans' gains.

According to polls, lower-income families have been hit the hardest, and inflation has begun to supplant even the coronavirus as a national concern.

Nothing like that has happened in the United States since the early 1980s.

Fed Chair Paul Volcker responded by raising interest rates to excruciatingly high levels — the prime rate for banks' best customers reached 20% in 1980 — and plunging the economy into a prolonged recession.

However, Volcker was successful in reducing inflation, which had been in double digits year over year for much of 1979-1981.

(With inputs from agencies)

Last month, inflation in the US hit its highest level in over 40 years, with a 7% increase over the previous year. This is driving up household costs, eroding wage growth, and putting pressure on President Joe Biden and the Federal Reserve to confront what has become the largest threat to the US economy.

Last month, inflation in the US hit its highest level in over 40 years, with a 7% increase over the previous year. This is driving up household costs, eroding wage growth, and putting pressure on President Joe Biden and the Federal Reserve to confront what has become the largest threat to the US economy. This is the greatest growth since June 1982, and it surpasses the 6.8% increase in November. As part of a quick rebound from the pandemic recession, prices for vehicles, petrol, food, and furniture increased dramatically in 2021. Government cash injections and ultra-low loan rates boosted demand for commodities, while vaccinations gave people the confidence to eat out and travel. As Americans increased their spending, supply networks were constrained by labour and raw material shortages, exacerbating pricing pressures. Watch | US inflation at nearly 40-year high The Labor Department reports that a measure of inflation that excludes volatile food and gas prices increased by 5.5 percent in December, the highest level in decades. Inflation increased by 0.5 percent in November, compared to 0.8 per cent the previous month. Inflation isn't just a concern in the United States. In December, inflation in the 19 European countries that use the euro currency increased by 5% over the previous year, the highest increase on record. Companies of all sizes are adapting to the best of their abilities. Businesses trying to employ have increased wages, but rising prices for goods and services have undermined many Americans' gains. According to polls, lower-income families have been hit the hardest, and inflation has begun to supplant even the coronavirus as a national concern. Nothing like that has happened in the United States since the early 1980s. Fed Chair Paul Volcker responded by raising interest rates to excruciatingly high levels — the prime rate for banks' best customers reached 20% in 1980 — and plunging the economy into a prolonged recession. However, Volcker was successful in reducing inflation, which had been in double digits year over year for much of 1979-1981. (With inputs from agencies)

US inflation hits 39-year high as consumer prices jump 7%

It’s just 60 miles from El Dorado Dairy in Ontario, California, to the nation’s largest container port in Los Angeles. But the farm is having little luck getting its products onto a ship headed for the foreign markets that are crucial to its business.

The farm is part of one of the nation’s largest cooperatives, California Dairies Inc., which typically ships 50 million pounds of its milk powder and butter out of ports each month. But roughly 60% of the company’s bookings on outbound vessels have been cancelled or deferred in recent months, resulting in about $45 million in missed revenue per month.

“This is not just a problem; it’s not just an inconvenience; it’s catastrophic,” said Brad Anderson, CEO of California Dairies.

A supply chain crisis for imports has grabbed national headlines and attracted the attention of the Biden administration.

Yet another crisis is also unfolding for American farm exports.

The same congestion at US&nbsp;ports and shortage of truck drivers that has brought the flow of some goods to a halt has also left farmers struggling to get their cargo abroad and fulfill contracts before food supplies go bad.

Ships now take weeks, rather than days, to unload at the ports, and backed-up shippers are so desperate to return to Asia to pick up more goods that they often leave the United States with empty containers rather than wait for American farmers to fill them up.

The National Milk Producers Federation estimates that shipping disruptions have cost the U.S. dairy industry nearly $1 billion in the first half of the year in terms of higher shipping and inventory costs, lost export volume and price deterioration.

Part of the problem is that shipping companies are able to charge far more to ferry goods from Asia to the United States than vice versa, so they don’t want to waste time waiting for a less lucrative load departing from the West Coast.

According to data from Freightos, an online freight marketplace, the cost to ship a 40-foot container from Asia to the U.S. West Coast soared to $18,730 in November — more than 17 times what it cost to make the reverse trip.

As a result, more than 80% of the 434,000 20-foot containers exported out of the Port of Los Angeles in September were empty — up from about two-thirds in September 2020 and September 2019.

It’s just 60 miles from El Dorado Dairy in Ontario, California, to the nation’s largest container port in Los Angeles. But the farm is having little luck getting its products onto a ship headed for the foreign markets that are crucial to its business.

It’s just 60 miles from El Dorado Dairy in Ontario, California, to the nation’s largest container port in Los Angeles. But the farm is having little luck getting its products onto a ship headed for the foreign markets that are crucial to its business. The farm is part of one of the nation’s largest cooperatives, California Dairies Inc., which typically ships 50 million pounds of its milk powder and butter out of ports each month. But roughly 60% of the company’s bookings on outbound vessels have been cancelled or deferred in recent months, resulting in about $45 million in missed revenue per month. “This is not just a problem; it’s not just an inconvenience; it’s catastrophic,” said Brad Anderson, CEO of California Dairies. A supply chain crisis for imports has grabbed national headlines and attracted the attention of the Biden administration. Yet another crisis is also unfolding for American farm exports. The same congestion at US ports and shortage of truck drivers that has brought the flow of some goods to a halt has also left farmers struggling to get their cargo abroad and fulfill contracts before food supplies go bad. Ships now take weeks, rather than days, to unload at the ports, and backed-up shippers are so desperate to return to Asia to pick up more goods that they often leave the United States with empty containers rather than wait for American farmers to fill them up. The National Milk Producers Federation estimates that shipping disruptions have cost the U.S. dairy industry nearly $1 billion in the first half of the year in terms of higher shipping and inventory costs, lost export volume and price deterioration. Part of the problem is that shipping companies are able to charge far more to ferry goods from Asia to the United States than vice versa, so they don’t want to waste time waiting for a less lucrative load departing from the West Coast. According to data from Freightos, an online freight marketplace, the cost to ship a 40-foot container from Asia to the U.S. West Coast soared to $18,730 in November — more than 17 times what it cost to make the reverse trip. As a result, more than 80% of the 434,000 20-foot containers exported out of the Port of Los Angeles in September were empty — up from about two-thirds in September 2020 and September 2019.

Crunch at ports may mean crisis for American farms

The US economy’s rebound from the pandemic is driving the biggest surge in inflation in nearly 13 years, with consumer prices rising in May by 5% from a year ago. The Labor Department said last month’s increase in the consumer-price index was the largest since August 2008, when the reading rose 5.4%.

World Business Watch: US inflation highest in 13 years as prices surge 5% in May

The report from the US Labor Department comes amid fears that rising consumer prices could push up interest rates.

US inflation sees biggest jump since 2008

US consumer prices fell for a third straight month in May and underlying inflation was weak as demand for goods and services remained subdued amid a recession caused by the COVID-19 pandemic.

But with nonessential businesses reopening after shuttering in mid-March to slow the spread of COVID-19, deflation, a decline in the general price level, is unlikely. Still, the report from the Labor Department on Wednesday suggested the disinflationary trend could persist for a while.

That together with a struggling labor market supports the Federal Reserve`s commitment to maintain its very accommodative monetary policy stance for some time while nursing the economy back to health. The US central bank said on Wednesday COVID-19 "will weigh heavily on economic activity, employment, and inflation in the near term."

<a href="https://www.wionews.com/business-economy/indias-economy-to-contract-by-32-in-2020-21-world-bank-304352">Also read:&nbsp;India's economy to contract by 3.2% in 2020-21: World Bank</a>

"We expect the crisis to result in a sustained slowing in inflation due to a net increase in slack," said Jim O`Sullivan, chief US macro strategist at TD Securities in New York.

The Labor Department said its consumer price index dipped 0.1% last month after plunging 0.8% in April, which was the largest decline since December 2008. Prices were held down by a 3.5% drop in the cost of gasoline, which followed a 20.6% plunge in April. That offset a 0.7% increase in the cost of food last month. Food prices jumped 1.5% in April.

Prices for food consumed at home rose 1.0% after surging 2.6% in April. The cost of beef shot up a record 10.8% in May, reflecting shortages as a result of COVID-19 infections at meat processing plants. Expensive food has led consumers to anticipate higher inflation this year.

<a href="https://www.wionews.com/world/japans-economy-minister-warns-against-deepening-negative-rates-304121">Also read:&nbsp;Japan's economy minister warns against deepening negative rates</a>

Consumers also paid more for dairy products, fruits and vegetables. But cereals and bakery products were cheaper last month. In the 12 months through May, the CPI edged up 0.1%. That was the smallest year-on-year rise since September 2015 and followed a 0.3% increase in April.

Economists polled by Reuters had forecast the CPI would be unchanged in May and gain 0.2% year-on-year. 
The National Bureau of Economic Research, the arbiter of US recessions, declared on Monday that the economy slipped into recession in February.

The Labor Department said in-store data collection had remained suspended since March 16 because of risks of exposure to COVID-19. The department added that data collection last month was also impacted "by the temporary closing or limited operations of certain types of establishments," leading to "an increase in the number of prices being considered temporarily unavailable and imputed."

Stocks on Wall Street were mixed in choppy trading. The dollar fell against a basket of currencies. US Treasury prices rose.

Rents increase

Excluding the volatile food and energy components, the CPI slipped 0.1% in May after decreasing 0.4% in April, the largest drop since the series started in 1957. The so-called core CPI fell in March for the first time since January 2010.

May marked the first time that the core CPI has dropped for three consecutive months. Underlying inflation was depressed by continued decreases in the costs of motor vehicle insurance and apparel. Airline fares fell 4.9% and used cars and trucks prices dropped 0.4%.

The cost of hotel and motel accommodation dropped 1.8% last month after record 8.1% plunge in April.

Those price declines offset a 0.3% increase in owners` equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home. This rent measure gained 0.2% in April, likely reflecting forbearance agreements between landlords and tenants who have lost their jobs or have had their hours cut because of the global pandemic.

The economy has shed nearly 20 million jobs since March.

Healthcare costs increased 0.5% in May after a solid 0.4% rise in April. Consumers paid more for household furnishings, new vehicles, alcoholic beverages and education.

In the 12 months through May, the core CPI rose 1.2%, the smallest gain since March 2011. The core CPI increased 1.4% year-on-year in April.

The Fed tracks the core personal consumption expenditures (PCE) price index for its 2% inflation target. The core PCE price index increased 1.0% on a year-on-year basis in April, the smallest advance since December 2010. May`s core PCE price index data will be released at the end of the month.

The Fed projected core inflation rising 1.0% this year and picking up to 1.5% in 2021. Back in December, it forecast inflation at 1.9% this year and 2% in 2021.

"The weakness in the economy should keep downward pressure on inflation over time and we expect softness in the core measures to be reported for upcoming months," said Daniel Silver, an economist at JPMorgan in New York.

"But we think that we probably have moved past the largest sequential monthly declines in inflation that came shortly after the virus spread."

US consumer prices fell for a third straight month in May and underlying inflation was weak as demand for goods and services remained subdued amid a recession caused by the COVID-19 pandemic.

US consumer prices fell for a third straight month in May and underlying inflation was weak as demand for goods and services remained subdued amid a recession caused by the COVID-19 pandemic. But with nonessential businesses reopening after shuttering in mid-March to slow the spread of COVID-19, deflation, a decline in the general price level, is unlikely. Still, the report from the Labor Department on Wednesday suggested the disinflationary trend could persist for a while. That together with a struggling labor market supports the Federal Reserve`s commitment to maintain its very accommodative monetary policy stance for some time while nursing the economy back to health. The US central bank said on Wednesday COVID-19 "will weigh heavily on economic activity, employment, and inflation in the near term." Also read: India's economy to contract by 3.2% in 2020-21: World Bank "We expect the crisis to result in a sustained slowing in inflation due to a net increase in slack," said Jim O`Sullivan, chief US macro strategist at TD Securities in New York. The Labor Department said its consumer price index dipped 0.1% last month after plunging 0.8% in April, which was the largest decline since December 2008. Prices were held down by a 3.5% drop in the cost of gasoline, which followed a 20.6% plunge in April. That offset a 0.7% increase in the cost of food last month. Food prices jumped 1.5% in April. Prices for food consumed at home rose 1.0% after surging 2.6% in April. The cost of beef shot up a record 10.8% in May, reflecting shortages as a result of COVID-19 infections at meat processing plants. Expensive food has led consumers to anticipate higher inflation this year. Also read: Japan's economy minister warns against deepening negative rates Consumers also paid more for dairy products, fruits and vegetables. But cereals and bakery products were cheaper last month. In the 12 months through May, the CPI edged up 0.1%. That was the smallest year-on-year rise since September 2015 and followed a 0.3% increase in April. Economists polled by Reuters had forecast the CPI would be unchanged in May and gain 0.2% year-on-year. The National Bureau of Economic Research, the arbiter of US recessions, declared on Monday that the economy slipped into recession in February. The Labor Department said in-store data collection had remained suspended since March 16 because of risks of exposure to COVID-19. The department added that data collection last month was also impacted "by the temporary closing or limited operations of certain types of establishments," leading to "an increase in the number of prices being considered temporarily unavailable and imputed." Stocks on Wall Street were mixed in choppy trading. The dollar fell against a basket of currencies. US Treasury prices rose. Rents increase Excluding the volatile food and energy components, the CPI slipped 0.1% in May after decreasing 0.4% in April, the largest drop since the series started in 1957. The so-called core CPI fell in March for the first time since January 2010. May marked the first time that the core CPI has dropped for three consecutive months. Underlying inflation was depressed by continued decreases in the costs of motor vehicle insurance and apparel. Airline fares fell 4.9% and used cars and trucks prices dropped 0.4%. The cost of hotel and motel accommodation dropped 1.8% last month after record 8.1% plunge in April. Those price declines offset a 0.3% increase in owners` equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home. This rent measure gained 0.2% in April, likely reflecting forbearance agreements between landlords and tenants who have lost their jobs or have had their hours cut because of the global pandemic. The economy has shed nearly 20 million jobs since March. Healthcare costs increased 0.5% in May after a solid 0.4% rise in April. Consumers paid more for household furnishings, new vehicles, alcoholic beverages and education. In the 12 months through May, the core CPI rose 1.2%, the smallest gain since March 2011. The core CPI increased 1.4% year-on-year in April. The Fed tracks the core personal consumption expenditures (PCE) price index for its 2% inflation target. The core PCE price index increased 1.0% on a year-on-year basis in April, the smallest advance since December 2010. May`s core PCE price index data will be released at the end of the month. The Fed projected core inflation rising 1.0% this year and picking up to 1.5% in 2021. Back in December, it forecast inflation at 1.9% this year and 2% in 2021. "The weakness in the economy should keep downward pressure on inflation over time and we expect softness in the core measures to be reported for upcoming months," said Daniel Silver, an economist at JPMorgan in New York. "But we think that we probably have moved past the largest sequential monthly declines in inflation that came shortly after the virus spread."

US inflation subdued with economy in recession

Sluggish economic growth in the second quarter forced the Federal Reserve to keep its benchmark interest rate unchanged for the sixth straight meeting on Wednesday.&nbsp; 
 
The central bank kept its target rate for overnight lending between banks in a range of 0.25 percent to 0.50 percent.&nbsp; 
 
Fed Chair Janet Yellen said US growth was looking stronger and rate increases would be needed to keep the economy from overheating and fuelling high inflation. 
 
&quot;We judged that the case for an increase has strengthened but decided for the time being to wait,&quot; Yellen told a news conference. &quot;The economy has a little more room to run.&quot; 
 
Yellen said the Federal Open Market Committee has to thread the needle between stifling growth with a premature increase and allowing the economy, feeding on a decade of easy money, to get away from them. 
 
But the two-meeting showed deep divisions between the policymakers, with three of the 10 arguing for a rate rise now.&nbsp; 
 
While some displayed confidence the economy would continue to grow through the second half, others said they need to see more sign of strength in the economy.&nbsp; 
 
The central bank cut its 2016 growth forecast to 1.8 percent, down from 2.0 percent in June, saying there were some persistent weak signs in the economy.&nbsp; 
 
It also projected a less aggressive rise in interest rates next year and in 2018, and cut its longer-run interest rate forecast to 2.9 percent from 3.0 percent. 
 
The Fed strongly signalled it could still tighten monetary policy by the end of this year as the labour market improved further and the inflation picked up.&nbsp; 
 
Yellen said she expected one rate increase this year if the job market continued to improve and major new risks did not arise. 
 
Analysts said the Fed certainly leaned toward a December hike but nevertheless left open the possibility of not taking any rate action before 2017. 
 
The next policy meetings of the US Federal Reserve are scheduled in early November and mid-December. 
 
(WION with inputs from agencies) 
&nbsp;

US Fed Chair Janet Yellen said the US growth appeared roughly balanced and needed more strength to survive a rate hike

Sluggish economic growth in the second quarter forced the Federal Reserve to keep its benchmark interest rate unchanged for the sixth straight meeting on Wednesday. The central bank kept its target rate for overnight lending between banks in a range of 0.25 percent to 0.50 percent. Fed Chair Janet Yellen said US growth was looking stronger and rate increases would be needed to keep the economy from overheating and fuelling high inflation. "We judged that the case for an increase has strengthened but decided for the time being to wait," Yellen told a news conference. "The economy has a little more room to run." Yellen said the Federal Open Market Committee has to thread the needle between stifling growth with a premature increase and allowing the economy, feeding on a decade of easy money, to get away from them. But the two-meeting showed deep divisions between the policymakers, with three of the 10 arguing for a rate rise now. While some displayed confidence the economy would continue to grow through the second half, others said they need to see more sign of strength in the economy. The central bank cut its 2016 growth forecast to 1.8 percent, down from 2.0 percent in June, saying there were some persistent weak signs in the economy. It also projected a less aggressive rise in interest rates next year and in 2018, and cut its longer-run interest rate forecast to 2.9 percent from 3.0 percent. The Fed strongly signalled it could still tighten monetary policy by the end of this year as the labour market improved further and the inflation picked up. Yellen said she expected one rate increase this year if the job market continued to improve and major new risks did not arise. Analysts said the Fed certainly leaned toward a December hike but nevertheless left open the possibility of not taking any rate action before 2017. The next policy meetings of the US Federal Reserve are scheduled in early November and mid-December. (WION with inputs from agencies)

Federal Reserve keeps interest rates unchanged, Chair Yellen signals one hike by year end

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