Falling Inflation Is Lifting the Nasdaq: 2 Stocks to Buy Hand Over Fist
Inflation refers to a broad rise in the price of goods and services, and it's a term that much of the country has become more familiar with over the last 18 months. Everything from the price of a haircut to the price of a car rises on occasion, and it erodes consumers' purchasing power as a result. Over the last 18 months or so, the rate of that rise has far exceeded what many consider to be normal.
The Consumer Price Index (CPI) is the primary measure of inflation and represents a year-over-year change in the price of a representative group of goods and services. The number is released by the U.S. Bureau of Labor Statistics each month. Since peaking at a 40-year high in June 2022, it has declined for eight consecutive months.
The February annualized inflation rate -- which was reported on March 14 -- stood at 6%, which was the lowest reading since September 2021. It's still far above the Federal Reserve's target rate of 2%, but the downward trajectory is crystal clear.
Source Fool.com
