US inflation eases further, complicating Federal Reserve outlook

US inflation moderated further, with headline consumer prices rising at a slower pace than expected, reinforcing signs of cooling price pressures. Despite the softer data, Federal Reserve officials indicated that policy decisions would remain data dependent, with no urgency to cut rates aggressively. Markets reacted cautiously as investors reassessed expectations for monetary easing in 2026. Economists noted that shelter and services inflation remain sticky, limiting the scope for rapid policy shifts.

Many salaried taxpayers panic when their income exceeds the tax free threshold by even one rupee, assuming their entire salary will become taxable. Under India’s new income tax regime, this fear is misplaced. The system applies the principle of marginal tax relief, which ensures that tax is charged only on the portion of income exceeding the exemption limit, not the full salary. With a standard deduction of ₹75,000 available to salaried individuals, a gross income of ₹12.75 lakh effectively translates into a taxable income of ₹12 lakh, attracting zero tax.