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It’s a surprise, to be sure, but a welcome one.
In June, inflation cooled 0.1% from May, according to the Bureau of Labor Statistics’ latest Consumer Price Index data. Though annual inflation was up 3%, it was down from 3.3% in May and beat economists' projections of 3.1%, the New York Times reported.
Core prices, which don’t include food and energy, rose 0.1% last month, the smallest increase since August 2021. Core prices increased 3.3% YoY, the smallest 12-month increase since April 2021, according to the BLS.
Another month of cooling inflation is good news for those hoping the Federal Reserve will cut interest rates in the near future. The Wall Street Journal said the latest CPI report “keeps the door wide open to a September interest-rate cut.”
“Overall, the Fed will need more evidence that shelter is moderating, but the June CPI data does increase the probability of the September cut,” Damir Tokic, an analyst at Seeking Alpha, noted in a report on the company’s website.