Consumer prices fell for the first time in august, the first monthly decline for inflation since April 2013. Inflation had picked up somewhat during the spring but seems to be bouncing back. The index was up 1.7% in August, a little lower than the 2% annual rise. I think that the inflation will pick back up to a 2% annual rise because it seems that it was just an off year for it. Hopefully Federal officials keep a close eye on the inflation measure.

 With tame inflation rates the Feds have the ability to keep rates low without risk of the economy overheating. The article also says that weak inflation is a symptom of a sluggish five year recovery. Hopefully income gains increase and unemployment lowers. Which will cause more consumer demand and strengthen the economy.

http://online.wsj.com/articles/u-s-consumer-prices-fall-0-2-in-august-1410957115