The Prices People Pay, Today

The rate of inflation keeps cooling. This week proved it again. The Headline Consumer Price Index (CPI) rose 3% in June compared to a year ago. That's the slowest pace since the Spring of 2021. Inflation keeps moving closer to the Federal Reserve's target of 2%. The Core rate, which strips out Food and Energy, was up 4.8%. That is also a 2-year low. It was 5.3% in May. The Fed's preferred measure of inflation is the Personal Consumption Expenditure (PCE) index. It was up 4.6% in May. The June PCE report comes later this month. The Fed's 2% target is believed to be the sweet spot for inflation. It's low enough for consumer comfort while allowing America's Economy to grow. It's not there yet.