This Important Economic Indicator Is Dropping Like a Rock, and It's Great News for These 2 Stocks
When inflation rises too high too fast, it can be bad news for the broader economy. In June 2022, prices of everyday goods and services rose at the fastest pace in 40 years with the annualized Consumer Price Index (CPI) hitting 9.1%.
It prompted a swift response from the U.S. Federal Reserve, which embarked on the most aggressive campaign to hike interest rates in its history. This has been a painful process, but allowing inflation to continue climbing would be much worse as it tends to affect low-to-middle income consumers the most, because they spend a larger proportion of their money on essential goods and services than high income earners.
Here's the good news: The Federal Reserve's efforts are working. Annualized CPI has declined in every single month since its peak last June. Now, 12 months later, it's at just 3% and is rapidly closing in on the Fed's 2% target, which means an end to the rise in interest rates might be around the corner.
Source Fool.com
