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Core prices climbed 3.4%, below last month’s 3.6% rise, the
lowest increase in three years. Contributing to the inflation
numbers, average gas prices tumbled 3.6% nationally from April
to May to $3.46 a gallon. According to AAA, the average price
for a gallon of gas in Illinois is $3.76.
“The good news is that unless Congress decides to go on another
stimulus spree, a return to 9% inflation is unlikely,” said Ryan
Young, chief economist with the Competitive Enterprise
Institute. “The economy’s good overall economic health means
that Congress can hopefully restrain itself.”
The University of Illinois Flash Index, a measure of Illinois’
economy, fell slightly to 102.6 in May due to weak state revenue
growth. Any figure over 100 signals growth.
“The U.S. and Illinois economies remain in what most observers
believe is the long-desired soft landing characterized by slower
growth and moderating inflation while avoiding a recession,”
said Fred Giertz, professor emeritus at the Institute of
Government and Public Affairs at the University of Illinois
Urbana-Champaign.
Most other measures suggest the economy is healthy, including
unemployment numbers, which remain relatively low. The national
unemployment rate is 4%, while Illinois’ unemployment rate is at
4.8%
The Federal Reserve on Wednesday kept its key interest rate
unchanged and hinted that just one rate cut is expected before
the end of the year.
“Inflation has eased over the past year but remains elevated,”
said a statement from The Federal Reserve. “In recent months,
there has been modest further progress toward the Committee’s 2%
inflation objective.”
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