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The yearly rate of inflation slowed in May to less than half of what it was at its peak last year, but it’s still far higher than the Federal Reserve’s goal, according to The Wall Street Journal (subscription).

What’s going on: Consumer prices increased 4% in May from a year earlier, marking the 11th straight month of slowdowns.

• On a monthly basis, consumer prices rose 0.1% in May, following a 0.4% increase in April.
• Core consumer prices—which exclude food and energy and are considered a better predictor of future inflation—rose 5.3% year-over-year in May, owing partly to increasing rent costs.

The good: “The U.S. economy has maintained momentum this year, staving off predictions of recession. The job market remains robust, and consumers have boosted their spending, though one measure shows economic output is falling. A possible credit crunch following the March collapse of a few regional banks could crimp the economy.”

The not so good: “While inflation has cooled significantly, higher prices for many goods and services are weighing on household spending decisions.”
 
What’s coming: The Fed meets today and tomorrow to determine its next steps for interest rates, which it has raised aggressively in the past year—though it probably will not raise them again this week, according to NAM Chief Economist Chad Moutray.

• The Fed “is likely to make no changes to the federal funds rate this week, but with inflation remaining more stubborn than preferred, it could hike short-term rates by 25 basis points at either or both of its July 25–26 and Sept. 19–20 meetings before hitting the pause button on rate changes,” he said.

With 200,000 people transitioning out of the military annually in addition to veterans, reservists and military spouses, the military population represents a highly skilled workforce. At a recent roundtable, panelists from Smithfield Foods, Dow and National Gypsum discussed how the manufacturing industry can leverage this population’s strengths.

Key Insights

• Manufacturers should identify a leader with military background in their organization to support the hiring process, particularly in parsing military and manufacturing lingo in job descriptions and resumes.
• Manufacturers should communicate if they will accept military experience as an equivalency to an associate’s or bachelor’s degree in their job descriptions.
• Networking can be the determining factor in getting an interview and landing a job offer. The MI will be hosting a virtual hiring fair in late February. Keep an eye on our website for more updates!
• Employee resource groups can be an excellent resource for newly hired military talent and can advocate for population-specific needs.

Read the full article here.