Jul 11, 2024 - Economy

Inflation cools again in June in another positive sign for U.S. economy

Courtenay Brown

shopper in parking lot — Shopping carts at a Costco store in Alhambra, Calif. last month. Photo: Eric Thayer/Bloomberg via Getty Images

The Consumer Price Index fell 0.1% in June and the measure that strips out energy and food costs rose by the same amount, the Labor Department said on Thursday.

Why it matters: The new data shows price hikes slowed sharply last month — offering relief to American consumers and bolstering the case for the Federal Reserve to cut interest rates.

By the numbers: CPI rose 3% in the 12 months through June, compared to the 3.3% in May.

The core measure that excludes volatile energy and food prices rose 3.3% in the past year—the smallest 12-month increase since April 2021.
In May, overall CPI was flat for the month, while core CPI rose 0.2%.

The big picture: The data confirms inflation is slowing again after progress stalled out in the first months of 2024.

Federal Reserve chair Jerome Powell said the central bank wants more evidence that price gains are decidedly slowing down before lowering interest rates.

What they're saying: "After a lack of progress toward our 2 percent inflation objective in the early part of this year, the most recent monthly readings have shown modest further progress," Powell told lawmakers this week.

"More good data would strengthen our confidence that inflation is moving sustainably toward 2 percent."

Go deeper: High inflation is no longer only risk for U.S. economy, Powell says

Editor's note: This is a developing story. Check back for updates.

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Inflation cools again in June in another positive sign for U.S. economy

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