Latest CPI shows inflation continues to cool

Latest CPI shows inflation continues to cool

The latest round of economic data from the

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s shows a further levelling off in inflation. Food prices continue to moderate. The “food at home” category increased by 0.1% in May after no change in April’s report.

The “food away from home” category continues to outpace food at home inflation. Food away from home increased for the second straight month in May to 0.4%.

The news comes just a couple of weeks after major retailers announced price cuts for food items. As Target and Walmart announced price cuts, other retailers were compelled to follow suit. Target cut prices after reporting a 3.2% decline in total sales.

In recent earnings call in late May, Target Executive Vice President Michael Fiddelke said, “Consumers continue to spend cautiously, particularly in discretionary categories.”

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