Has the slow decline in the pace of consumer price inflation in the US hit bottom? If so, is that good news for the economy? A cautious “yes” applies in both cases, albeit with the usual caveats. Looking at the core reading of consumer price inflation through last month suggests that the price trend has a floor around the 1.6% rate. We won’t know for sue until future reports arrive, but it’s getting easier to think that we’ve seen the trough. If so, that’s an encouraging transition for the economic outlook.
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