Blog: Inflation is in the Eye of the Beholder

CPI this month was again encouraging, mostly because there were no surprises. While the media hyped that this was the first time Headline CPI had measured below 3% since March 2021, the drop was actually modest, from 2.98% in June to 2.92% in July. Still, that was considered a win to investors. Like beauty, inflation is in the eye of the beholder.

And the Fed is already declaring victory in all but their actions, until the September meeting. The numbers themselves are suggesting that the Fed feels they're close enough to their 2% target, and they've become more concerned about employment and the economy in general.