The Fed’s favorite gauge of inflation, Personal Consumption Expenditures, was released this morning, revealing that we consumers spent 0.2% more money last month than the month before. The Index is up +2.8% from this time last year—identical to last month’s reading—but it’s expected to cool to a +2.4% year-over-year (YOY) increase next month.

Not to be left out, the Gross Domestic Product (GDP) data was released yesterday, showing a +2.3% YOY rise for the last quarter. The lofty estimate of +2.7% fell significantly short of the previous calculation of +3.1%, and today’s summary was lower than both. Though GDP has cooled quickly recently, it’s expected to hover around a +2.3% growth rate for the rest of this year.

Once again, we Americans are producing fewer goods while spending more money consuming them. That pattern spells disaster if it’s your personal financial strategy, so don’t play that game. However, on the macro scale, these two massive data points suggest that inflation is cooling ever closer to the 2.0% YOY goal line. And that brings us ever closer to lower interest rates.