Core CPI rose 2.4% year over year, the lowest reading since March 2021. That is not a victory lap, but it is a meaningful change in the inflation backdrop.
Headline CPI was 3.4% year over year and core rose 0.3% month over month. The mix says inflation is still above target, yet the underlying trend is no longer accelerating. That gives the Federal Reserve room to wait rather than react to every supply-driven move.
The key takeaway is optionality. With core inflation cooling and no immediate need for rate hikes, policy can remain data-dependent while the economy absorbs prior restraint.