US budget deficit unexpectedly tripled

Data from the US Treasury Department shows that the country's budget deficit in the period from October 2022 to June 2023 will reach 1,390 billion USD - up from 515 billion USD in the same period last year.

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The US budget deficit increased sharply. (Source: Forbes)

During the same period, budget revenue in the world's largest economy also decreased by 11% compared to last year, while spending increased by 10%.

According to the Ministry of Finance, the US Federal Reserve's revenue decreased by 93 billion USD. Interest on public debt increased by 131 billion USD to 652 billion USD in the period from the beginning of the year to the present, mainly due to the increase in key interest rates.

A recent report by economic research consultancy Pantheon Macroeconomics said that although many Fed officials have made it clear that interest rate hikes need to continue, a positive report on the Consumer Price Index (CPI) could change this possibility.

Previously, on July 12, the US Department of Labor announced data showing that in June 2023, the US consumer price index (CPI) decreased to 3% compared to the same period last year.

This is a sharp recovery from a year ago - when soaring energy costs pushed inflation to 9.1% in June 2022 - the fastest annual rate since November 1981.

CPI in the world's largest economy has fallen for 12 consecutive months and is at its lowest level since March 2021.

Source