Latest / Inflation Explained with Fexingo: CPI, Prices, and the Cost of Living for Everyday People
Why the Fed Watches Supercore Inflation So Closely
In this episode of Inflation Explained, Lucas and Luna dig into the Fed's favorite inflation gauge: supercore services inflation. With July CPI out and the annual rate at 3.4 percent, they explain why the Fed is less worried about headline numbers and more focused on a narrow slice that excludes food, energy, and housing. They walk through what's in the supercore basket—things like medical care, transportation, and recreation—and why it stays sticky even when overall inflation cools. They also touch on the recent drop in ten-year breakevens and what bond markets are signaling about…
The skinny
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