The Consumer Price Index, a measure of inflation, rose three percent in June year-over-year, a sharper inflation slowdown than economists prognosticated, reports The New York Times. Compared to May’s prices, prices in June fell 0.1 percent.
“This is the inflation report that we’ve been waiting for,” said Neil Dutta, head of economic research at Renaissance Macro.
Despite overall inflation cooling, food inflation saw a slight increase in June, according to the report. Overall, food prices grew 0.2 percent over the month, up from May’s 0.1 percent compared to the month prior. For the second consecutive month, the cost of dining also climbed 0.4 percent.
Fed officials said earlier this week that they endeavor to thread the needle when it comes to managing the economy. Econ “If we loosen policy too late or too little, we could hurt economic activity,” said Fed chair Jerome H. Powell. “If we loosen policy too much or too soon, then we could undermine the progress on inflation.” The policymakers are targeting a two percent annual inflation value, based on the Personal Consumption Expenditures inflation measure provided by the Bureau of Economic Analysis, according to the report. (SFA)
