One assumes the Federal Reserve is happy that inflation is up. After falling below the Fed’s 2% target for six years, the Commerce Department has reported the CPI for personal consumption items, excluding food and energy, was up 2% on a year-to-year basis in May. And the index including food and energy was up 2.3%.
As an aside, it is interesting that the Fed apparently likes to look at the former, because it is less volatile, when consumers focus on the latter because that is what they pay. To the extent that expectations regarding inflation matter, and many economists believe they do, one would think the latter might be of more relevance.