How’s Inflation? Depends How It’s Measured

The official data will be released tomorrow, but if past trends continue, the US inflation rate will come in higher than most Americans are used to, but still relatively low. In May, the consumer price index rose 4.2% from a year earlier, while personal consumption expenditures increased 3.4%. To the extent these indicators are a way to take the economy’s vital signs, these numbers show a concern, but not a crisis.