Inflation is finally showing signs of easing. The personal consumption expenditure (PCE) price index, the Fed's preferred inflation gauge, remained unchanged month over month in May after increasing 0.3% in April.  Year over year, the PCE price index rose 2.6% in May after increasing 2.7% in April. Core PCE, which excludes the volatile food and energy prices, climbed 0.1% month over month in May after an upwardly revised 0.3% rise in April. On a year-over-year basis, core PCE rose 2.6% in May after increasing 2.8% in April, May's increase was also the smallest since March 2021. More importantly, goods prices fell 0.4% in May, the largest since November 2023. Also, prices of gasoline and other energy products decreased 3.4%. The Federal Reserve has hiked interest rates by 525 basis points since March 2022. As a result, inflation declined sharply in 2023. However, it once again rose in the first quarter, igniting fears that the central bank could resume rate hikes. The Federal Reserve has kept interest rates steady in its current range of 5.25-5.5% for the past 12 months. Also, Fed Chairman Jerome Powell, in his June post-FOMC meeting statement, said that the Fed sees only one rate cut this year. However, positive inflation data has ...