U.S. inflation declined to 3% in June from a year earlier, falling to its lowest annual rate in more than two years.
On a monthly basis, the Consumer Price Index (CPI) that measures prices for goods and services rose 0.2%, less than had been expected by economists.
Inflation in America is now at its lowest level since March 2021.
The June decline was attributed to cost declines and easy comparisons from 12 months ago when prices were rising at the fastest clip in 40 years.
Economists surveyed by the Dow Jones Newswire had expected inflation to rise 0.3% in June from May, and advance 3.1% from the previous year.
Removing volatile food and energy prices, so called “core inflation” rose 4.8% from June 2022 and 0.2% from May of this year.
Economists had expected core inflation to increase 5% on an annualized basis and 0.3% in monthly terms.
Inflation in America peaked at 9% in June 2022, the highest rate of increase since November 1981.
While an improvement, core inflation continues to run well above the U.S. Federal Reserve’s 2% annualized target.
The U.S. central bank is next scheduled to decide on interest rates July 26.
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