At 3%, the inflation rate reached its lowest point last month since March 2021, according to the Bureau of Labor Statistics. That’s a full percentage point lower than the 4% reported in May.

With perpetually climbing inflation, back in 2022, the Federal Reserve increased its benchmark interest rate for the first time since 2008. Since then, the Fed has raised the rate by a total of 5 percentage points with 10 consecutive monthly increases, only taking a break in July. 

“The run of softer inflation readings likely will push the Federal Reserve closer to ending its fastest monetary policy tightening campaign since the 1980s,” Reuters reported.

The inflation rate, however, still is below the 2% target set by the Fed. After a month-long pause on interest rate increases, Federal Reserve Chair Jerome Powell indicated a few weeks ago in a speech before an international conference in Spain that more increases will be forthcoming until that goal is met.

Inflationary pressures have hit nursing homes hard, particularly with ground-up development. More than one-third of providers surveyed by McKnight’s Long-Term Care News last year said their construction costs were among the most affected by inflation. Almost half said they had put off a building or capital improvement project.

Unemployment

The unemployment rate sat at 3.6% in June, little changed from the previous month according to the Labor Department.

The unemployment rate for whites declined from 3.3% in May to 3.1% in June 2023. At the same time, unemployment rates for adult men (3.4%), adult women (3.1 %), teenagers (11%), Blacks (6%), Asians (3.2%) and Hispanics (4.3%) showed little change.

Private-sector employment increased by 497,000 jobs in June, according to the June ADP National Employment Report, as the McKnights’ Business Daily previously reported.

Service-providing jobs increased by 373,000 according to ADP. Of them, the professional/business services sector lost 5,000 jobs, but the education/health services sector added 74,000 jobs, and the leisure/hospitality sector gained 232,000 jobs.