Sticky Inflation Leveling Off Above Fed's Target

Restaurant CPI Inches Lower While Grocery Prices Spike Higher

Headline inflation at 2.7% is at expectation, indicating that we’ve stalled in the move toward 2% target. Restaurant CPI ticked down slightly, while Grocery prices had a major uptick coming in at the highest level since Nov 2023.

We are a long way from the highs of 9%, so CPI below 3% is good news in comparison. However, it is clarifying that the ‘soft landing’ that was foretold earlier in the year (in which inflation was at target & the economy was growing) has not come to fruition (yet). This means that the hard question remains: is a 2% inflation target more important than robust economic growth?