Yahoo Finance US annual inflation slowed to 3.0% in June; monthly release falls 0.1%
Investing.com -- U.S. inflation slowed marginally in June on an annual basis, and a gauge of core prices closely watched by the Federal Reserve also slowed, pointing to a cooling of pricing pressures.
The U.S. consumer price index rose 3.0% in June on an annualized basis, according to data from the Bureau of Labor Statistics (BLS) released earlier Thursday. Economists had expected the number to fall to 3.1% from 3.3% in May.
The monthly figure actually fell 0.1%, weaker than the previous flat number.
Meanwhile, the core reading, which strips out volatile items like food and energy, moved up by 3.3% year-on-year, slightly below the 3.4% May figure. On a month-on-month basis, the core figure increased by 0.1%, below the previous month's 0.2% gain.
The numbers were still above the Fed's desired rate of around 2% to achieve stable and sustainable growth, even though the central bank has embarked on a long-running campaign of borrowing cost hikes aimed at corraling price growth.
However, Federal Reserve Chair Jerome Powell stated earlier this week, during his two days of commentary before the Senate and House committees that oversee the central bank, that the U.S. central bank was edging closer to a rate cut decision, while also insisting that he was not yet ready to declare that inflation had been beaten.
"Recent data, however, has been encouraging," Powell told lawmakers, and he emphasized that risks to the job market now stand on about equal footing with the risks of high inflation - with the Fed intent on meeting both its price stability and full employment goals.
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US annual inflation slowed to 3.0% in June; monthly release falls 0.1%
