It Isn’t Time for an Inflation Victory Lap
The moderation in the most recent consumer-price-index (CPI) report from the Bureau of Labor Statistics is an encouraging sign — but only that. It doesn’t mean inflation is no longer a threat, and it doesn’t mean that Democratic policies have succeeded.
First, while the rate of inflation has declined, it is still too high. The Federal Reserve must stick to its 2 percent target, and the measure it uses, growth in personal consumption expenditures (PCE), is still roughly double that.
These percentages are all year-over-year. Energy prices peaked last summer and...