Inflation is up in the latest Consumer Price Index report, showing the first total-year increase since the financial crash.
Prices increased about 0.3% in June, and 0.4% in May. This increase in prices is welcomed by many economists and analysts; raising prices is a good sign that the economy is growing. The Federal Reserve Bank currently is holding a 2% annual inflation target, but because of the strong dollar (meaning the US dollar is comparatively “stronger” than other currencies in the global markets, making it easier to import and harder to export).
Having some inflation is necessary to spur business growth; if there is some inflation, companies have an incentive to hire people and not hold cash. If inflation is too high, prices go up too fast for wages to keep up.
To find the current inflation rates, you can visit the Federal Reserve Bank of Saint Louis’s FRED research system by clicking here. For more on this inflation report, click here to read more on Bloomberg.