14 August 2024
The latest Consumer Price Index (CPI) report shows a mixed picture of inflation in the United States. While headline CPI rose 0.2% month-over-month as expected, bringing the year-over-year rate down to 2.9%, core CPI (excluding food and energy) also increased by 0.2% month-over-month, with its annual rate slowing to 3.2%. Despite these modest improvements, core consumer prices have now risen for 50 consecutive months, reaching a new record high. The data suggests that while overall inflation is moderating, underlying price pressures persist, particularly in core goods where deflation appears to have stalled. This presents a complex scenario for policymakers as they navigate between controlling inflation and supporting economic growth.