Focus at Four: Economist breaks down recent inflation report
BRYAN, Texas (KBTX) – A recent report by Consumer Price Index from the Bureau of Labor Statistics shows the rate of inflation cooled to 3% in June.
According to the report, that is the lowest rate since early 2021.
“All of the signs of falling inflation rates are good news,” said Dennis Jansen, Director of Texas A&M’s Private Enterprise Research Center. “The Fed wanted the inflation rate to fall and it took awhile, but we’re still hopefully and gradually, returning to 2%.”
However, Jansen warned that the core inflation rate increased at a 5% rate last month.
“The Fed often says that the core inflation rate doesn’t tell you what you’re spending now, but it is a better forecaster of what’s going to happen in the future,” said Jansen.” So, I don’t think the fight’s over yet, but we’ve come along way.”
From May to June, overall prices rose 0.2%, up from just 0.1% in the previous month but still comparatively mild.
Despite the report, experts believe the Federal Reserve will raise its benchmark rate when it meets later this month.
The Fed has raised its benchmark rate by a substantial 5 percentage points since March 2022, the steepest pace of increases in four decades.
You can watch our full interview from our Focus at Four in the video player above.
