June Consumer Price Index is a Good Sign, But If Inflation Stops Trending Down More Interest Rate Hikes Are On The Way

In the chaotic landscape of the global economy, the recent Consumer Price Index (CPI) reports have offered a small glimmer of hope. Data suggests that the stringent measures taken to combat the inflationary highs of 2022, which peaked at 9.1%, are beginning to bear fruit.

Inflation in the United States eased to a multiyear low of 4% in May, marking the lowest rate since March 2021. Also, the Federal Reserve decided to pause rate hikes in June. This, coupled with their open-ended stance on future increases, signals a cautious optimism.

Still, the journey towards economic stability is far from over. Though the Consumer Price Index is down in June, it’s risen by 19% compared to May 2020. Not only that, inflation rates are still much higher than the Federal Reserve’s target of 2%.

Knowing all this, what’s the best way to think about the future of the economy? Lawrence Sprung, CFP, Founder and Wealth Advisor at Mitlin Financial, offers his insights to shed more light on the situation.

Lawrence’s Thoughts:

“Well, the CPI reports have come in this week and they’re coming in relatively good. The way we wanted to see it. It’s indicating and showing that we are well off the highs that we saw in mid to late 2022. So what’s been going on has been working. Now the important thing is what’s going to happen going forward. Well yesterday the Fed made it very clear with their pause in June and also their commentary stating that they’re leaving future rate hikes on the table. So the expectation is that if we don’t see the economic data furthering that inflation is on the way down, I would expect that we would see a rate hike in July and then another wait and see approach for future hikes. So hopefully you find this helpful and make it a great day.”

Article written by Adrienne St. Clair.

Follow us on social media for the latest updates in B2B!

Image

Latest

Leadership
Just Thinking… About Why Self-Work Is the Foundation of Great Leadership
March 29, 2025

As conversations around workplace wellness, mental health, and burnout intensify across industries, many professionals are waking up to the reality that productivity and personal growth must go hand-in-hand. The rise of holistic health coaching, combined with a renewed focus on emotional intelligence in leadership, reflects a larger cultural shift: we’re not just working anymore—we’re…

Read More
Healthcare trends
2025’s Hottest Healthcare Trends with David Willis, Principal with ECG
March 28, 2025

Healthcare organizations have faced significant challenges over the last five years due to the lasting financial and operational impacts of the COVID-19 pandemic, widespread labor shortages, and rising costs of care delivery. The pandemic forced hospitals to prioritize crisis response over long-term strategy, leading to deferred investments, workforce burnout, and financial strain. Now, with many…

Read More
Microschool
With ESA Demand Outpacing Supply, How Can Utah Expand Microschool Access?
March 28, 2025

Across the country, education savings accounts (ESAs) are reshaping how families think about schooling—but in Utah, surging demand is outpacing available options. Last year, roughly 27,000 students applied for Utah’s ESA program, but only 10,000 scholarships were available. While parental interest in alternative education is booming, a new bottleneck is emerging: the supply of…

Read More
freight guards
Can a Single FreightGuard Review End Your Trucking Company? Sadly, Yes
March 27, 2025

As the freight industry grapples with the lingering impacts of a market downturn and rising digital vulnerabilities, a critical question has emerged: how can trucking companies defend their reputations in an era where a single online review can kill a business? In 2023 alone, over 88,000 trucking companies shuttered, and for many, the catalyst…

Read More