The June CPI and PPI numbers are encouraging, but there are still reasons for caution. The challenge is disentangling the underlying trend from the unwinding of idiosyncratic one-off factors.
Medical care services has been a persistent drag on inflation for the past year. It’s my understanding that the way this is measured lags significantly. Is there a more accurate way to track what is going on in this space? Or how it might be impacting overall inflation?