The U.S. inflation rate declined to an annualized rate of 3% in June, its lowest level in three years.
The June inflation reading declined from 3.3% in the previous month of May.
The Consumer Price Index (CPI) is a broad measure of costs for goods and services across the American economy that’s issued monthly by the U.S. Labor Department.
Excluding volatile food and energy prices, so-called “core CPI” rose 0.1 % monthly and 3.3% from a year ago in June.
That was less than economists’ consensus forecasts that had called for core inflation to rise 0.2% month-over-month and 3.4% from a year ago.
The annual increase in the core inflation rate was the smallest since April 2021.
A 3.8% decline in gasoline prices helped to lower inflation across America in June and offset 0.2% increases in both food prices and shelter costs.
Used vehicle prices fell 1.5% month-over-month in June and were down 10% from a year earlier. Used car prices had been one of the main drivers of inflation starting back in 2021.
Economists and analysts say that the June inflation reading bolsters the case for the U.S. Federal Reserve to begin lowering interest rates at its policy meeting this September.
All three of the major U.S. stock indices moved higher on news of the June inflation data, while Treasury yields decreased.
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