The Federal Reserve is aiming for long-term inflation of 2%. But economists say a bit more could help some workers and borrowers.
All eyes will be on feelings about inflation for the month of July.
If people think prices will rise, they will modify their behavior. That could, in turn, lead to price hikes.
Social Security provides cost of living updates. But for those with additional money to invest, inflation can eat into more conservative investments like cash and bonds.
The consumer price index doesn't reflect the hot housing market, and some say that's a problem.
It seems both are rising at a rate that will keep inflation in check ... for now.
Consumer inflation expectations aren't rising sharply, according to Morning Consult, consistent with the Fed's view that most inflation right now is "transitory."
Typically, unionized companies are the ones that directly tie cost-of-living increases to inflation. And union membership has been falling.
The central bank raised its inflation forecast to 3.4% by year-end and expects to hike its benchmark interest rate twice by late 2023.