The overall CPI rate slid by 0.1% in June, with a 3% increase in the 12 months through June. Core rate was up 3.3%, the smallest rise since April 2021.
Prices soared post-COVID lockdowns due to constrained supply chains and increased spending, pushing inflation to 9.1%. Current rate at 3% represents disinflation, not price decrease.
Prices remain almost 23% higher than 5 years ago. At pre-COVID 2% inflation, prices would be just 11% higher. Deflation usually occurs during severe economic slowdowns or recessions.
Although inflation is improving, it hasn't decreased enough for the Fed to consider rate cuts at the upcoming policy meeting, with further monitoring and assessment needed.
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