There are to make things the bank had to do today, the first immediate decision, we focused on that half point percentage rise two things. that did seem to convince many in the markets at the bank was getting on the front foot again in terms of the fight against inflation, but it was also trying to kind of set out parameters in terms of where it might go in the next 12 months, 18 months. in the past it has told the markets, you know, you got above yourself, we re not going to go to 6%. today it didn t do any of that. so the markets are assuming as you say, there may be another two or three rises up to just below 6% maybe by the beginning of next year, but what the bank of england stressed is that it is all depended on the data. we are to know where they thought they would be three months ago and that s because when the facts change, they say they change their mind. they do hope inflation will still tumble over the next year. if it does, may be rates do not need to go up so high but at the minute the assumption is, they will go up to 5.7 6% next year.
Questions. i will be seeing you all later in afternoon. i m not taking any questions right now. thank you very much. do you now when you expect prices to get back to normal, mr. president? president biden: i hope by the end of much year but i can t make that prediction. i m convinced they re not going to go up but continue to go down. do you plan to veto the dana: reporters always give it a shot. the president only taking one question when he expects prices to go down. bill: by the end of next year. more than a lot of people would like to know. consumer price index was a little lower giving us hope inflation might be coming down in the near term. dana: gas prices being down. cost of goods going down, toys, a good thing for families going into the holiday season. we ll see. the fed i think has some things that they still feel like they need to do. the number is still at 7.1%.
Gas prices have now dropped 38 cents in a month. the hope inflation may have peaked in june there is no question that we still have work to do. the fed is going to say, oh my goodness, we ve got to stop this snowball from getting bigger and bigger and turning into an avalanche. so, tom, let s talk about the fed. they re expected to raise interest rates again this month any guidance on how high they might eventually go? reporter: the market is expecting another three quarter of a point rate hike this month, maybe a full percentage point hike in september. and then you know, mortgage rates are not fully connected to what the fed does, but they are influenced by how the fed moves. so mortgage rates likely to move up over the course of the next few weeks and months, lester all right tom costello starting us off, thank you. another major story tonight, the growing outrage after that surveillance video from the uvalde school shooting was publicly leaked. some victims families furious it wasn t shown to them first. sam brock on the new questions being raised reporter: tonight, more fallout from that stunning video posted by the austin american statesman blindsiding and
Why nasa is now joining the hunt for ufos announcer: this is nbc nightly news with lester holt good evening, everyone, from los angeles where president biden today offered an explanation for why consumer prices are still climbing may s numbers out today dashing hope inflation was starting to cool. instead it jumpe another percent growing to 8.6% year over year, leaving inflation sitting at 40-year highs affecting everything from home prices to food, clothing to gasoline put another way, american households are paying $460 more per month to buy the same amount of goods and services with the port of los angeles as his background president biden putting some of the blame on shippers, oil companies and vladimir putin as wall street suffered a major sell-off the dow lost 880 points, 2.7% the nasdaq down 414
Global supply chain crisis. the good news, chinese manufacturing is starting to emerge from another covid lockdown, hopefully jump starting the supply chain. is there any hope inflation gets under control this year? there may be some initial signs but it s too early to say whether inflation has peaked. we ve seen this three-point plan out of the white house to go after inflation. steve ratner was here a couple of hours ago saying a lot of this pandemic stimulus is to blame for what we re seeing. how do they get out of this mess? the white house point to the low unemployment rates. the president s three-point plan was short on specifics, but the white house recognizes this is the biggest problem that faces democrats and this white house heading into the midterms. there s so much on the president s plate right now, the war in ukraine, the pandemic, mass shootings, the list goes
Would take, as i mention there have been unanticipated and large shocks to the economy. reporter: republicans blame president biden. the historic high inflation democrats helped unleash with runaway spending last spring, is taking its toll on america s hope of the future. reporter: but it s not just an american problem. inflation in europe is also running at 8%, driven higher by the war in ukraine and the global supply chain crisis. the good news, chinese manufacturing is starting to emerge from another covid lockdown. hopefully jump-starting the supply chain. is there any hope inflation gets under control this year? there may be some initial signs, but it s too early to say whether inflation really has, so to speak, peaked. reporter: lumber prices coming down. target cutting prices on some items because they overstocked. in the meantime this is not just a u.s. problem as we ve said. central banks in the uk and
Strikts e strips out fairly volatile things, gasoline. it s got everything to do with russia invading ukraine, there is nothing we can do about that. that s a part of the price people around the world have to pay for putin s bad actions. but we do hope. i think there is some hope inflation will come down. the question is whether it will come down quickly or slowly. there is a bunch that the administration can do, things like reducing tariffs and the like. really with we will see whether the work we did over the past decade, the fed wanted to believe it can consistently deliver inflation. if it convinces people of that that is in off to create the self fulfilling prophecy. they expect low inflation, it will create low inflation. we learned that 4.5 million workers quit their job in march. is the job market good enough for people who may not be satisfied with what they are currently doing and want to