Annual CPI inflation in the US dropped from its June 2022 peak of 9.1% to just 3% as of last month. The June inflation number is good news, pointing to continued movement in the right direction. The June rate declined from 4% in May. Inflation was last close to 3% in March 2021.  Sharply lower energy prices compared to last year led to the lower inflation we now see. Used car and airfare prices were other major contributors. But, last week the good jobs numbers didn't bode well for a slowing economy. Some indicators do, others don't. Good news is good news and sometimes good news is bad news. There is more to this equation than any one number. According to The Wall Street Journal, Inflation cooled last month to its slowest pace in more than two years, giving Americans relief from a painful period of rising prices but remaining strong enough to leave the Federal Reserve on course to keep raising interest rates. Fed officials are still likely to raise interest rates 0.25% when they meet later this month. If improvement continues, this month’s hike may be the last for this cycle.  But, it is believed that Powell’s focus will stay on price stability for a long time. Maudlin Economics said, The Fed now faces a combined communications and policy problem, as reaching its 2% target will require unpopular choices. To slow the economy further, the Fed must raise long-term interest rates by further reducing its balance sheet .... the Fed will have to consider modifying its inflation target from the current 2% to 3%, since reaching 2% would generate far more pain than we have seen so far.  Breitbart reported that "The Biden administration will no doubt [and Friday did] declare the latest headline numbers as a victory over inflation. While the decrease in the pace of price increases is a welcome development to many Americans, it is unlikely to be very reassuring too many household budgets. Compared with pre-Biden dollars, Americans now have experienced price increases of around 17 percent." At 17%, its hard for people to feel good about consumer prices. When budgeting for future years, everyone expects if they spend the same thing they spent in 2020, it will be at least 15% more expensive going forward. If spending was $70,000 in 2020, that would mean spending $106,461 for the same consumer goods in 2025! And, as far as the economy goes, none of this takes into effect event risk such as what crazy things will happen in China, in Ukraine, in Korea, in the Middle East, more damaging Democrat spending & economic ideology has only been temporarily halted by the 2022 election, and what about events around the 2024 election (remember 2020). Then, there are impacts from industrial policy? We may have a long, bumpy way to go. More From Breitbart: More From The Wall Street Journal (subscription required):

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