Federal Reserve Meeting Minutes: CPI remains somewhat elevated, labor market conditions are stable.

Jin10 data reported on July 10, the latest released minutes of the Federal Reserve’s June meeting show that the Federal Reserve staff pointed out at the last meeting that CPI is still somewhat high. The unemployment rate continues to remain low, and the labor market conditions are solid. Existing indicators show that real GDP is steadily rising in the second quarter. According to CPI and PPI, total consumer price inflation in May, measured by the 12-month change in PCE, is estimated at 2.3%. Core PCE in May is 2.6%, with both total inflation and core inflation rates lower than the levels at the beginning of the year. Short-term inflation expectation indicators based on surveys remain high, while most long-term inflation expectation indicators based on surveys remain stable.