U.S. inflation will fall to 2.1% in 2024, CBO projects

Inflation is likely to continue to slow over the next two years and approach the Federal Reserve’s target rate of 2%, according to projections released Friday by the Congressional Budget Office.

The nonpartisan U.S. agency is forecasting the price index for personal consumption expenditures (PCE), which is the Fed’s preferred inflation gauge, will fall to 2.1% next year from 2.9% this year, but then edge up to 2.2% in 2025, “as downward pressures on inflation in food and energy prices ease and stronger economic activity modestly…