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Inflation Again Falls Short of Fed Target

Wall Street Journal (06/25/15) Ben Leubsdorf

Annual inflation has undershot the central bank’s 2% target for the 37th consecutive month, according to the U.S. Department of Commerce. U.S. prices increased in May, with the personal consumption expenditures price index, the U.S. Federal Reserve’s preferred inflation gauge, rising a seasonally adjusted 0.3% from April, and marking the biggest rise in more than two years. However, May prices rose only 0.2% from a year earlier, and growth in core prices actually decreased from April’s 1.3% to 1.2% in May.