Inflation in the US has the lowest annual increase in more than 2 years – 07/12/2023 – Market

US consumer prices rose modestly in June and posted their smallest annual increase in over two years.

With that, the country’s inflation continues to slow down, but probably not enough to discourage the Fed (Federal Reserve, BC of the USA) from resuming raising interest rates at its meeting at the end of this month.

The consumer price index rose 0.2% last month, after rising 0.1% in May, the Labor Department said on Wednesday (12). The index was driven by increases in gasoline prices, as well as in rents, which offset the decrease in the price of used vehicles.

In the 12 months through June, the consumer price index increased by 3.0%. That was the smallest annual increase since March 2021 and followed a 4.0% advance in May.

Excluding volatile food and energy prices, the Index increased by 0.2% in June. It was the first time in six months that the so-called core inflation did not record monthly gains of at least 0.4%. In the 12 months through June, the core index rose 4.8%, after rising 5.3% in May.