Inflation has cooled off dramatically since last summer, but ‘back to normal’ is still a long way off

By one measure, the U.S. economy is already close to slaying the price inflation that has bedeviled it for the better part of two years.Forecasts called for 12-month consumer price increases to slow from 4% in May to 3.1% in June — just about 1 percentage point above the Federal Reserve’s 2% inflation target.But the rest of the story for much of the economy — namely, the “core” inflation figure that reflects everything except food and energy prices — might be more difficult for consumers to bear, according to Riccardo Trezzi, lecturer at the University of Geneva and founder of a consultancy that focuses on underlying inflation.“If you want to hit a [2% core inflation] target, unfortunately I suspect an unemployment pickup will be necessary,” Trezzi said.The unemployment rate in the U.S. tumbled dr …

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