Consumer confidence in the U.S. rose in May after three straight months of declines, though Americans are still anxious about inflation and interest rates.
The latest inflation readings could help convince the Federal Reserve’s policymakers that inflation is returning to its 2% target.WASHINGTON — Inflation in the United States cooled in June for a third straight month, a sign that the worst price spike in four decades is In a better-than-expected report, consumer prices declined 0.1% from May to June after having remained flat the previous month, the Labor Department said Thursday.
“This confirms that there is very little chance of inflation re-accelerating and that it’s time for some rate cuts from the Fed," said Luke Tilley, chief economist at Wilmington Trust, a wealth management firm. Grocery prices ticked up by a slight 0.1% last month, the first increase in five months, and are just 1.1% higher than a year ago. Food prices are still up, on average, 21% from March 2021, when inflation started to surge, although Americans' average wages have also risen sharply since then.
Rental costs are typically among the last inflationary dominoes to drop, which is why economists are encouraged by the smaller rise in June. A jump in apartment construction in the past two years has brought many new units online, forcing some landlords to keep rents in check to attract renters.
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