The US inflation dipped in June to its slowest pace in more than 2 years, indicating price increases are cooling amid the Federal Reserve’s rate hiking regime.
The data by the country’s Labour Department showed the Consumer Price Index grew at an annual rate of 3 percent – the smallest since March 2021.
On a monthly basis, the increase in consumer prices reached 0.2 percent.
Economists had expected a 3.1 percent increase, according to FactSet, CBS News reported.
Inflation update: Focus on core prices
Core inflation, which strips out volatile food and energy prices, rose 4.8 percent on an annual basis.
Economists focus more on “core” inflation as it presents a truer gauge of price increases.
Though price hile has cooled since hitting its highest levels in four decades last year in the wake of aggressive rate hikes by the Federal Reserve, prices — especially core inflation — are still rising at a pace that’s higher than the Fed’ target of 2 percent.
The central bank has recently indicated that additional interest rate increases could be in store.
Housing costs were the largest contributor to June’s rise in prices, the Labor Department said. Shelter costs rose 7.8 percent compared with a year earlier, outpacing the increases for food and new vehicles, which rose 5.7 percent and 4.1 percent, respectively.
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