Good news, inflation falls for 12th straight month

U.S. inflation rate drops to 3% in June. Now, economists weigh when the Fed will raise the interest.
Published: Jul. 12, 2023 at 12:28 PM MDT
Email This Link
Share on Pinterest
Share on LinkedIn

RAPID CITY, S.D. (KEVN) - For the 12th continuous month, inflation has cooled in the U.S. sliding to 3% in June, down from May’s 4% increase.

The fall comes as the Federal Reserve voted not to raise the federal interest rate. Inflation is not at the target of 2% yet. Economists question whether we will see another interest rate hike from the Feds at their next meeting. Most experts say yes.

“The Fed is looking for an appropriate balance. The economy is not so finely tuned that they can say with precision what that balance is. They have to do something, probably raise rates a little bit, again. Then see what happens,” explains Don Frankenfeld

Frankenfeld says an interest rate hike will hurt the economy to some degree but is needed to cool inflation to that target of 2%. Inflation was at 9.1% in June last year and in Rapid City, we were paying nearly $4.76 cents a gallon. So, this morning’s Consumer Price Index is good news, but not where the Fed wants us.