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Opinion
John Authers

Curb Your Enthusiasm on the Good Inflation News

Core inflation remains stubborn, and the Fed cares less about headline numbers than sticky prices. They’re still moving upward. 

As far as the Fed is concerned, the peak is not yet in. Then there’s the tricky part in coming down.

As far as the Fed is concerned, the peak is not yet in. Then there’s the tricky part in coming down.

Photographer: Str/AFP/Getty

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It’s a pleasant change. The headline US inflation number for July came in at 8.5%, lower than the 9.1% registered in June and also lower than virtually any analysts had forecast. A succession of surprisingly strong numbers as prices continued to rise and inflation pressures broadened has at last been interrupted. It’s reasonable to think that the peak for headline inflation — including food and fuel and everything else — is behind us.