US Inflation Eases in June, Raising Hopes for a Potential Rate Cut
According to BlockBeats, inflation in the United States moderated in June, enhancing the confidence of Federal Reserve officials that a rate cut may be on the horizon. The latest data from the US Bureau of Labor Statistics revealed that the core Consumer Price Index (CPI), which excludes food and energy costs, increased by only 0.1% from May. This marks the smallest rise since August 2021.
The data, released on Thursday, also indicated that the core CPI climbed by 3.3% year-on-year, the lowest annual increase in over three years. Economists suggest that the core index offers a more accurate measure of underlying inflation trends than the overall CPI. This moderation in inflation is largely attributed to declining gasoline prices.
The overall CPI experienced a 0.1% decline compared to the previous month and dropped by 3% year-on-year, marking the first annual decrease since the onset of the COVID-19 pandemic. This decline in the overall CPI has bolstered expectations that the Federal Reserve might consider a rate cut in the near future, as they continue to monitor economic indicators closely.