This Week In The Economy: Prices for Services Keep Inflation Rate Elevated, Consumer Rides To US Economy’s Rescue, CBO Sounds Alarm Over Debt Levels

Welcome to a regular snapshot review of U.S. and international economic news that aims to 1) provide a window into the challenges and decisions facing businesses today, 2) determine the direction of economic policy — such as the speed at which central banks decide to raise interest rates, and 3) assess what the impact will be for consumers.

High Costs For Services Keep U.S. Price Inflation Stubbornly High

The U.S. Bureau of Economic Analysis reported this week that overall U.S. consumer prices — as measured by the Federal Reserve’s preferred inflation gauge — rose at a slower pace in May compared to a year ago but less progress has been made when food and energy prices are excluded.

“Within goods, the largest contributor to the decrease was spending on new motor vehicles and parts (led by new light trucks). Within services, the largest contributors to the increase were “other”…