U.S. Inflation Drops To 3% In June As Gas Prices Fall
Confidence UbaniJuly 11, 20241 Mins read364 
The U.S. inflation rate decreased to 3.0% in June due to falling gas prices, which reportedly offset rising housing costs. The latest data from the Labour Department showed a decline in the consumer price index (CPI) due to falling gas prices, which helped offset rising housing costs.
The CPI’s 3.0% rise from a year ago marks a significant reduction from the 9.1% peak in mid-2022. The core CPI, which excludes volatile food and energy prices, also showed the smallest annual increase since 2021, coming in at 3.3%.
The unexpected drop in inflation has led investors to anticipate potential interest rate cuts, with the likelihood of a September cut rising to 100%, according to LSEG data. This development caused the dollar to fall 0.6% against some currencies. Treasury yields drop as well.
Federal Reserve Chair Jerome Powell acknowledged the modest progress in reducing inflation but emphasized the need for more consistent data before confidently lowering interest rates. The Fed has maintained its benchmark rate of 5.25-5.5%, the highest since 2001.
Read more: U.K. Inflation Drops to 2.3%, Lowest in Nearly Three Years.
EURO 2024: Semi-finals Full of Drama, Tricky Final?
About The Author
Related Articles
Floods Kill Over 100 People in Eastern DR Congo After Kasaba River Overflows
More than 100 people have been confirmed dead after severe floods hit...
Five Facts About Pope Leo XIV, The First From The U.S
An American-born cardinal has been elected pope for the first time in...
Ghana’s Inflation Slows to 21.2% in April, Fourth Monthly Decline
Ghana’s annual consumer inflation rate eased to 21.2 per cent in April...
Mali’s Government Suspends All Political Parties Indefinitely Over Public Order Concerns
Mali’s government has suspended the activities of all political parties and organisations...