Officials at the Federal Reserve might have reason to feel optimistic about the latest inflation indicators, even if Americans are still paying through the nose for basic goods.
As previously relayed by The Dallas Express, legacy media has been spinning a yarn about a “soft landing” from the out-of-control inflationary environment spawned by the COVID-19 lockdowns and the Biden administration’s recovery policies.
That “soft landing” narrative may not ring true for many Americans who have to go to the grocery store and shell out several dollars for a carton of eggs and butter.
Here’s some of what Fox Business reported on the recently published personal consumption expenditures index:
An inflation measure closely watched by the Federal Reserve eased slightly in June, even as high prices continued to weigh on millions of Americans.
The personal consumption expenditures (PCE) index showed that consumer prices rose 0.1% from the previous month, according to the Labor Department. On an annual basis, prices climbed 2.5% – down slightly from the 2.6% reading recorded the previous month.
The figures were both in line with estimates from economists surveyed by LSEG.
“Overall, it’s been a good week for the Fed,” said Chris Larkin, managing director of trading and investing at E*Trade. “The economy appears to be on solid ground, and PCE inflation essentially remained steady. But a rate cut next week remains a longshot.”
Prices for services increased 0.2% for the month and remain up 3.9% from the same time last year. The cost of goods also rose 0.1% on a monthly basis, despite a 2.1% drop in energy prices, according to the report. Goods prices are down 0.2% when compared with last year.
When excluding food and energy, core prices climbed 0.2% from the previous month and 2.6% from the previous year. Both of those figures are slightly higher than estimates.