(ConservativeHub.com) – On Thursday, July 11, the Labor Department reported that inflation had slowed to a 3 percent annual increase in June. This is a decrease when compared to the 3.3 percent annual increase in May and reportedly comes alongside the first price decreases since that start of the 2020 health emergency.
In June, it was also found that the CPI dropped by 0.1 percent. The consensus projections showed that economists expected that the annual inflation rate would be at 3.1 percent.
June was the third consecutive month of declining annual increases in CPI, which is similar to the trend found in the personal consumption expenditures (PCE) price index. The PCE is frequently used to measure inflation.
On Thursday, former top White House economist Jason Furman said that in June, the inflation data were “amazing.” This comment was made in a post on X, formerly known as Twitter.
CPI “core” prices, which do not examine volatile categories including food and energy showed a 0.1 percent advancement in June. In May they increased by 0.2 percent, while in April by 0.3 percent.
Shelter costs continue to be high at a 5.2 percent annual increase. However, in June they only increased by 0.2 percent, marking a decrease of 0.4 percent when compared to earlier months in the year.
The reductions in inflation have also increased the possibility that the Federal Reserve might move forward with a reduction of interest rates in the near future. Such a decrease could be as early as later in July, The Hill reported.
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