Key inflation report shows sign of inflation cooling

Mass — A new inflation report shows that inflation is on the decline.

U.S. consumer inflation slowed again to 6.5 percent over the past 12 months, easing some pressure on consumers and the economy.

That’s down from 7.1 percent and a noted improvement from the June peak of 9 percent, but it is still a far cry from when inflation was under 2 percent in 2019.

The report is arguably the most important piece of economic data to come out so far this year because it will shape market expectations for this first Federal Reserve policy meeting of the year, which will happen in February.

The report cited falling gas prices last month as a biggest contributor to the decline, offsetting increases in the area of shelter/housing expenses.

Futures for the Dow and S&P rose slightly in anticipation of a potential market rally in reaction to the report, when the markets open at 9:30 a.m.

This is a developing story. Check back for updates as more information becomes available.

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