Inflation Is Falling — But These 2 Things Keep Getting More Expensive
By:
Pete Grieve
Pete Grieve
Reporter | Joined May 2024
Has also written:
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Inflation just cooled to the lowest rate since March 2021, indicating that the Fed’s interest rate hikes are having their intended effect — but price growth still remains higher than ideal in the U.S.
Consumer prices are up 3.0% in the past year, which is a major decline from the peak rate of 9.1% last summer, according to the latest consumer price index (CPI) report. Elevated housing costs and soaring auto insurance rates are two significant factors preventing inflation from falling further.
Still, Wednesday’s June CPI reading showed more progress toward the Federal Reserve’s 2% target as inflation fell from a year-over-year rate of 4.0% in May. The next Fed meeting is scheduled for July 25 and 26.
