In either case, both numbers are still above the Fed’s 2% target, which suggests the US central bank may not be done quite yet. And the Fed’s preferred inflation measure - the core Personal Consumption Expenditures Index - inched down to 4.6% in its latest reading. Based on the latest reading, inflation as measured by the Consumer Price Index grew at just 3% in June. The Fed’s aggressive campaign is intended to beat down inflation. That’s how fast the Federal Reserve has hiked its overnight bank lending rate, which directly or indirectly affects many consumer rates.
