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July 20, 2024 4:07 am

National News

Inflation Continues to Improve, Beats Expectations 

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Staff Writer
June 14, 2024

Inflation is continuing to improve, bringing welcome relief to consumers across the country. According to the May Consumer Price Index from the U.S. Department of Labor’s Bureau of Labor Statistics, consumer prices held flat during May, proving lighter than analysts’ forecasts of a 0.1% increase for the month.

Annual growth decelerated to 3.3% year-over-year, again beating projections of 3.4% year-over-year gains. The core CPI, which excludes volatile food and energy components, also outperformed economists’ expectations by 0.1% on both the month and the year.  

Following this news, the Federal Reserve announced it would maintain interest rates at current levels, continuing its policy since last July. However, Fed policymakers did announce that they expected to be able to lower interest rates later this year.

Buoyed by the favorable inflation report and last week’s robust jobs report, the Nasdaq and S&P 500 surged to record highs.