1 Big Reason the Stock Market Is Surging -- and 2 Stocks to Buy Right Now
Inflation is measured by the Consumer Price Index (CPI), which factors in a basket of goods and services to determine how much prices are changing over time.
In June 2022, the CPI hit a 40-year high of 9.1% on an annualized basis, which prompted the U.S. Federal Reserve to embark on the most aggressive campaign to hike interest rates in its history. That was an unpleasant combination for the stock market, because it was certain to slow consumer spending, leading investors to reduce their growth expectations for most companies.
But fast forward to today, and the economic picture looks far more promising. The Bureau of Labor Statistics just released its CPI data for May 2023, and the annualized number came in at just 4.0%, which means the rise in inflation has officially been cut in half since last year's high.
Source Fool.com
