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President Biden has openly celebrated the results of recent inflation reports, and Federal Reserve officials also breathed a sigh of relief as the rapid rise in the prices showed signs of losing steam.
Now, the vital question is whether that pace of progress toward slower price increases – one that was long-awaited – can persist.
The Personal Consumption Expenditures index, which is preferred by the Fed as inflation measure, is expected to registered up to 4.2 or 4.3 per cent in a report on Thursday, after volatile food and fuel costs are stripped out. This would mark an rise from 4.1 per cent in June. However, it would still remain considerable low from 5.4 which was last summer’s reading. This states that the inflation still remains above Fed’s 2 per cent goal and that its path back to normal will be a bumpy one.
Most of the economists are not really concerned about the inflation as they believe that the inflation will ease going further this year. Moreover, the beginning of 2024 will fade away the disruptions of pandemic, hence the consumer become less willing to accept ever-higher prices for goods and services.