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Despite Economic Growth Inflation Isn't Rising

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The Eccles Building, which houses the U.S. Federal Reserve in Washington, D.C.

May and June saw the US economy continue its expansion, but there is still no indication that inflation will pick up anytime soon.

That’s according to the Federal Reserve, which also said wage pressures were “modest to moderate” while price pressures are very modest, Reuters reports. This is frustrating news for the Fed. It's been trying to bump inflation up to the 2% target for months.

Part of the reason inflation isn't rising is because wages aren’t rising, at least not much. While the US economy experienced strong job growth last month, only Cleveland, Chicago and S.F. reported increased wages for entry-level workers. [Reuters]