Schneider writes: “Annual U.S. consumer price inflation increased by 1.6 per cent in June, the smallest rise since October last year, and year-on-year inflation has been declining since February when it hit 2.7 per cent, reducing the need for the Fed to tighten.” However, the US Fed doesn’t target the CPI-U, it targets the personal consumption expenditure price index. That being said, the PCEPI inflation rate also seems to be slowing down. It has declined steadily from 2.1% in February to 1.4% in May, the most recent month published. If one looks at the annualized quarterly growth rates, the slowdown has been even more pronounced, going from 2.5% in February to 0.4% in May.