8/29/2023 0 Comments Download simple sticky notes 5.8![]() That latest downswing means that egg prices are actually now down from last year. Within food, there were some bright spots - particularly bright yellow yolky ones.Įgg prices, which skyrocketed last year as a deadly avian flu hit US flocks, sank 13.8% from April, marking the largest monthly drop for that category since 1951. Markets are currently pricing in a 95.3% probability that the Fed pauses on Wednesday, according to CME FedWatch.Ĭars and rent are big drivers of inflation … for nowįood inflation continued to decline on an annual basis however, price increases did pick up slightly in May for groceries as well as food away from home, by 0.1% and 0.5%, respectively. Since March 2022, the Fed has increased its benchmark interest rate 10 consecutive times in an attempt to bring down historically high levels of inflation, but is widely expected to pause that hiking campaign this time to digest the cumulative - and lagging - effects of monetary tightening as well as the impacts from stricter lending standards within the banking industry. Tuesday’s CPI report comes as Fed officials sit down for the first day of their monetary policymaking meeting and is one of the last major pieces of economic data to digest before they announce their rate decision on Wednesday. “They’ve raised rates for 10 consecutive meetings in a row and the increase is the most and fastest pace in decades, so they want to wait and see if their actions are sufficient to keep inflation moving in the right direction.” “Inflation is still much too high, but the trend is in the right direction, and the Fed is ready to take a break from raising interest rates,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said in a statement. The Fed would like to see inflation (as measured by the core Personal Consumption Expenditures index) settle in at 2%. ![]() ![]() While 4% is a far cry from 9.1%, it’s also still well above the desired inflation target for the Federal Reserve, which has been in the throes of a historic monetary tightening campaign since March 2022. ![]()
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