US annual consumer inflation cools to 3%, lowest since 2021
The US Labor Department Wednesday said the annual consumer inflation cooled in June to its lowest rate since 2021, adding that it was an encouraging sign for policymakers battling to rein in cost pressures. The key inflation gauge, the consumer price index (CPI), rose 3.0% from a year ago last month, down from 4.0% in May and slightly lower than analysts expected.
The US Federal Reserve has raised interest rates rapidly over the last year to ease demand and bring down price increases. While Central bank officials have signalled that further rate hikes are likely needed to bring inflation back to their two percent target, the June CPI report raises market doubts about the number of additional increases needed down the line.
June's consumer inflation figure marks the lowest annual rate in more than two years. In another positive sign, the monthly "core" rate —excluding the volatile food and energy components — came to its lowest reading since 2021.
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