On The Radar

On The Radar

September 20, 2022

The yearly change in CPI has been falling for two months, so what happened to the enthusiasm?

There has been a change in optimism on the inflation front.

Last month, the release of the July Consumer Price Index (CPI) report showed that the yearly change in CPI fell from the June peak of 9.1% y-o-y to 8.5%. There was hope that the economy was entering a period of sustained disinflation. That implied the Fed would not have to be aggressive in its interest rate hikes.