- 12-month inflation has dipped to 1.9%, down from 2.7% in February.
- Core inflation is up 1.7% over the last year, also in a downward trend.
- Will the Federal Reserve back off on interest rate increases? Not likely today, but possible in the future if this trend continues.
Holders of Treasury Inflation-Protected Securities and I Bonds are also interested in non-seasonally adjusted inflation, which is used to adjust the principal balances on TIPS and set future interest rates for I Bonds. May’s inflation index was set at 244.733, up 0.09% from April.
Also, I have updated my Tracking Inflation and I Bonds page with these new numbers.
And here are the new July inflation indexes for TIPS.