Latest inflation rate good news
Published July 13, 2023
(Editor's note) On Wednesday it was reported the consumer price index rose 0.2% in June and was up 3% from a year ago, the lowest level since March 2021.)Today’s inflation report was very positive. All the measures - year over year total, year over year core rate, and monthly rate showed improvement - meaning slower price increases. This increases the odds the Fed will continue its pause in increasing interest rates. It also moves us much closer to the Fed’s goal of a year over year total inflation rate of 2 percent. However, households should not expect average prices to drop. But they can expect the Fed to potentially lower interest rates sometime in early 2024. The chances of a “soft landing” - meaning achieving lower inflation without a recession - has also risen.