Supercore inflation rose 4.7% in June; Fed’s 2% target unmet for 39 months. Fight against inflation continues.

The Fed’s fight against inflation is still not over:

Supercore inflation CPI increased by 4.7% year-over-year in June, slightly down from 4.8% in May.

Supercore inflation is an important gauge that the Fed follows which includes Core services less housing.

Despite the first… pic.twitter.com/iJoeD9yv1z

— The Kobeissi Letter (@KobeissiLetter) July 31, 2024

• Supercore Inflation: This measure, which excludes housing costs from core services, did indeed show a slight decline. The year-over-year increase was 4.7% in June, down from 4.8% in May.
• Month-over-Month Decline: Supercore inflation saw a month-over-month decline of -0.1% in June, marking the first such decline since August 2021.
• Long-Term Target: Supercore inflation has been above the Federal Reserve’s 2% long-term target for 39 consecutive months.
• Fed’s Ongoing Efforts: Despite the recent decline, supercore inflation remains elevated, indicating that the Federal Reserve still has work to do to bring inflation down to its target.