Inflation slowed again in June. The big news being that the core rate, which strips out volatile food and energy prices, rose only 0.2% m/m, the slowest in almost two years. The y/y core rate finally gave way, falling from 5.3% to 4.8%, the biggest decline in the post-pandemic era.
The Fed is still expected to hike Fed Fund rates by another 25 basis points at its July 26th meeting, despite CPI core finally moving in the right direction. The Bank of Canada has certainly not been deterred, and last week raised the policy rate by another 25 bps, despite progress on inflation.
