An Inflation Gauge Tracked by the Federal Reserve Falls to Its Lowest Point in 2 Years

A shopper surveys stacks of clothing on a sales table in a Costco warehouse in Colorado Springs, Colo., on June 22, 2023. David Zalubowski/AP Photo

WASHINGTON—An inflation index that is closely monitored by the Federal Reserve tumbled last month to its lowest level since April 2021, pulled down by lower gas prices and slower-rising food costs.

At the same time, consumers barely increased their spending last month, boosting it just 0.1 percent, after a solid 0.6 percent gain in April.