Federal Reserve's favored inflation gauge shows price pressures easing as rate cuts near

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Federal Reserve's favored inflation gauge shows price pressures easing as rate cuts near
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An inflation measure closely tracked by the Federal Reserve remained low last month, extending a trend of cooling price increases that clears the way for the Fed to start cutting its key interest rate next month for the first time in 4 1/2 years

Shoppers consider items displayed in refrigerators at a Costco warehouse Aug. 22, 2024, in Parker, Colo. An inflation measure closely tracked by the Federal Reserve remained low last month, extending a trend of cooling price increases that clears the way for the Fed to start cutting its key interest ratePrices rose just 0.2% from June to July, the Commerce Department said Friday, up a tick from the previous month’s 0.1% increase. Compared with a year earlier, inflation was unchanged at 2.5%.

Friday’s figures underscore that inflation is steadily fading in the United States after three painful years of surging prices hammered many families’ finances. According to the measure reported Friday, inflation peaked at 7.1% in June 2022, the highest in four decades, before steadily dropping.

Friday's report also showed that healthy consumer spending continues to power the U.S. economy. Americans stepped up their spending by a vigorous 0.5% from June to July, up from 0.3% the previous month.

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Federal Reserve's favored inflation gauge shows price pressures easing as rate cuts nearFederal Reserve's favored inflation gauge shows price pressures easing as rate cuts nearAn inflation measure closely tracked by the Federal Reserve remained low last month, extending a trend of cooling price increases that clears the way for the Fed to start cutting its key interest rate next month for the first time in 4 1/2 years.
Read more »



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