U.S. consumer prices edged higher in July, the government reported Thursday, but underlying data signaled that inflation is not starting to resurge in the world’s biggest economy.

The Labor Department reported that the consumer price index rose 3.2% on an annualized basis in July, up from 3% in June. On a month-to-month basis, prices were up by two-tenths of a percent in July, the same figure as in June compared to May.

The U.S. central bank, the Federal Reserve, has raised its benchmark interest rate 11 times over the last 17 months, pushing it to a 22-year high to curb inflation, which a year ago topped 9%. Higher interest rates boost borrowing costs for businesses and consumers alike and can cut into spending.

The newest economic report could give Fed policymakers reason to put off another rate increase at its September meeting. The July figures lowered the three-month annualized rate of core inflation, which excludes volatile food and energy prices, to 3.1%, the lowest reading in two years.

Fed officials often focus on the core reading because they consider it a better barometer of future inflation than the overall rate.

Greg McBride, the chief financial analyst of Bankrate.com, said in a statement, “The monthly increase of 0.2% in the consumer price index is right on target and represents the kind of progress needed to get inflation down to a sustainable 2% annual rate.”

But he warned that “further increases in oil prices could throw up a detour on the journey to 2% inflation.”

“Everything we buy in a store or online has to be transported, and even some service categories add fuel surcharges or raise prices in response,” McBride said. “Easing inflation was aided by gasoline prices that had fallen nearly 20% in the 12 months ending July 31. But with a recent surge, gas prices are now closing in on $4 per gallon. Something to watch in the months ahead.”

The state of the U.S. economy is particularly important as the national November 2024 presidential election edges closer. While other issues are important to tens of millions of voters — abortion rights, immigration control, crime, Russia’s war in Ukraine, to name a few — the state of the American economy and the cost of living are often at the forefront of considerations in voters’ minds.

While the 3.5% U.S. unemployment rate remains at near a 50-year low, and hundreds of thousands of jobs have been added to the economy month after month, national polls show that voters do not think that President Joe Biden has managed the economy well.

Opposition Republican presidential contenders have often blamed Biden for too much government spending and the country’s ever-growing long-term debt total, which now is more than $32 trillion.
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Virgin Galactic rocketed to the edge of space with its first tourists Thursday, including a former British Olympian who bought his ticket 18 years ago and a mother-daughter duo from the Caribbean.

The space plane glided back to a runway landing at Spaceport America in the New Mexico desert, after a brief flight that gave passengers a few minutes of weightlessness.

Cheers erupted from families and friends watching from below when the craft’s rocket motor fired after it was released from the plane that had carried it aloft. The rocket ship reached about 88 kilometers high.

Richard Branson’s company expects to begin offering monthly trips to customers on its winged space plane, joining Jeff Bezos’ Blue Origin and Elon Musk’s SpaceX in the space tourism business.

Virgin Galactic passenger Jon Goodwin, who was among the first to buy a ticket in 2005, said he had faith that he would someday make the trip. The 80-year-old athlete — he competed in canoeing in the 1972 Olympics — has Parkinson’s disease and wants to be an inspiration to others.

“I hope it shows them that these obstacles can be the start rather than the end to new adventures,” he said in a statement.

Ticket prices were $200,000 when Goodwin signed up. The cost is now $450,000.

He was joined by sweepstakes winner Keisha Schahaff, 46, a health coach from Antigua, and her daughter, Anastatia Mayers, 18, a student at Scotland’s University of Aberdeen. Also on board: two pilots and the company’s astronaut trainer.

It was Virgin Galactic’s seventh trip to space since 2018, but the first with a ticket-holder. Branson, the company’s founder, hopped on board for the first full-size crew ride in 2021. Italian military and government researchers soared in June on the first commercial flight. About 800 people are currently on Virgin Galactic’s waiting list, according to the company.

Virgin Galactic’s rocket ship launches from the belly of an airplane, not from the ground, and requires two pilots in the cockpit. Once the mothership reaches a height of about 15 kilometers, the space plane is released and fires its rocket motor to make the final push to just over 80 kilometers up. Passengers can unstrap from their seats, float around the cabin for a few minutes and take in the sweeping views of Earth, before the space plane glides back home and lands on a runway.

In contrast, the capsules used by SpaceX and Blue Origin are fully automated and parachute back down.

Like Virgin Galactic, Blue Origin aims for the fringes of space, quick ups-and-downs from West Texas. Blue Origin has launched 31 people so far, but flights are on hold following a rocket crash last fall. The capsule, carrying experiments but no passengers, landed intact.

SpaceX, is the only private company flying customers all the way to orbit, charging a much heftier price, too: tens of millions of dollars per seat. It’s already flown three private crews. NASA is its biggest customer, relying on SpaceX to ferry its astronauts to and from the International Space Station. since 2020.

People have been taking on adventure travel for decades, the risks underscored by the recent implosion of the Titan submersible that killed five passengers on their way down to view the Titanic wreckage. Virgin Galactic suffered its own casualty in 2014 when its rocket plane broke apart during a test flight, killing one pilot. Yet space tourists are still lining up, ever since the first one rocketed into orbit in 2001 with the Russians.

Branson, who lives in the British Virgin Islands, watched Thursday’s flight from a party in Antigua. He had held a virtual lottery to establish a pecking order for the company’s first 50 customers — dubbed the Founding Astronauts. Virgin Galactic said the group agreed Goodwin would go first, given his age and his Parkinson’s.
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За словами міністра, не всі надходження від міжнародних партнерів підтверджені
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China’s exports plunged by 14.5% in July compared with a year earlier, adding to pressure on the ruling Communist Party to reverse an economic slump.

Imports tumbled 12.4%, customs data showed Tuesday, in a blow to global exporters that look to China as one of the biggest markets for industrial materials, food and consumer goods.

Exports fell to $281.8 billion as the decline accelerated from June’s 12.4% fall. Imports sank to $201.2 billion, widening from the previous month’s 6.8% contraction.

The country’s global trade surplus narrowed by 20.4% from a record high a year ago to $80.6 billion.

Chinese leaders are trying to shore up business and consumer activity after a rebound following the end of virus controls in December fizzled out earlier than expected.

Economic growth sank to 0.8% in the three months ending in June compared with the previous quarter, down from the January-March period’s 2.2%. That is the equivalent of 3.2% annual growth, which would be among China’s weakest in three decades.

Demand for Chinese exports cooled after the U.S. Federal Reserve and central banks in Europe and Asia started raising interest rates last year to cool inflation that was at multidecade highs.

The export contraction was the biggest since the start of the COVID-19 pandemic in 2020, according to Capital Economics. It said the decline was due mostly to lower prices, while volumes of goods were above pre-pandemic levels.

“We expect exports to decline further over the coming months before bottoming out toward the end of the year,” said Capital Economics in a report. “The near-term outlook for consumer spending in developed economies remains challenging.”

The ruling party has promised measures to support entrepreneurs and to encourage home purchases and consumer spending but hasn’t announced large-scale stimulus spending or tax cuts. Forecasters expect those steps to revive demand for imports but say that will be gradual.

“Domestic demand continues to deteriorate,” said David Chao of Invesco in a report. “Policymakers have pledged further policy support, which could buoy household spending and lead to an improvement in import growth for the coming few months.”

Exports to the United States fell 23% from a year earlier to $42.3 billion, while imports of American goods retreated 11.1% to $12 billion. China’s politically sensitive trade surplus with the United States narrowed by 27% to a still-robust $30.3 billion.

China’s imports from Russia, mostly oil and gas, narrowed by just under 0.1% from a year ago to $9.2 billion. Chinese purchases of Russian energy have swelled, helping to offset revenue lost to Western sanctions imposed to punish the Kremlin for its invasion of Ukraine.

China, which is friendly with Moscow but says it is neutral in the war, can buy Russian oil and gas without triggering Western sanctions. The United States and French officials cite evidence that China is delivering goods with possible military uses to Russia but haven’t said whether that might trigger penalties against Chinese companies.

Exports to the 27-nation European Union slumped 39.5% from a year earlier to $42.4 billion, while imports of European goods were off 44.1% at $23.3 billion. China’s trade surplus with the EU contracted by 32.7% to $19.1 billion.

For the first seven months of the year, Chinese exports were off 5% from the same period in 2022 at just over $1.9 trillion. Imports were down 7.6% at $1.4 trillion.
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