Federal Reserve’s preferred inflation gauge shows price pressures continuing to cool
Associated PressWASHINGTON — The Federal Reserve’s preferred inflation measure cooled last month, the latest sign that price pressures are waning in the face of high interest rates and moderating economic growth. Under the hood, there is a slowing that suggests they’re making progress.” In the past six months, core inflation has risen at just a 2.5% annual rate, not far above the Fed’s 2% target, and down sharply from a year earlier, when it was 5.1%. Americans in general appear to be growing more price-sensitive in their shopping, which could also limit companies’ ability to raise prices, according to the Fed’s beige book, which was issued Wednesday. The U.S. inflation gauge that was issued Thursday, called the personal consumption expenditures price index, is separate from the government’s better-known consumer price index.