Inflation Cools to 2.6% But Grocery Prices Still Bite

Headline inflation moderated to 2.6 percent annualized in the latest reading, but food-at-home prices remain 19 percent above their 2021 baseline, leaving households squeezed despite the cooler top-line.

Economists point to persistent supply-chain pressure in beef and dairy, and to elevated labor costs in food processing.

What it means for the Fed

Markets read the print as fractionally dovish, with futures now pricing two rate cuts before year-end.