Inflation rate June 2024: What is it, and what it means for the U.S. economy
Price increases slowed more sharply than expected in June, adding to signs that high inflation has abated and boosting hopes that the Federal Reserve will cut interest rates this fall.
Price increases slowed more sharply than expected in June, adding to evidence that high inflation has subsided and potentially clearing the way for the Federal Reserve to lower interest rates that affect everything from mortgages to credit card payments.
The Consumer Price Index rose 3% year over year in June, slower than the 3.3% annual rate the month before. From May to June, prices fell 0.1% — the first time the monthly reading meaningfully declined since May 2020, early in the pandemic.
Thursday's report from the Bureau of Labor Statistics adds to hopes that the Fed will cut interest rates in September. That would bring some relief to voters ahead of November's election, which both parties expect could hinge on Americans' views of an otherwise solid economy.
In remarks to Congress this week ahead of Thursday's report, Fed Chair Jerome Powell noted the risks of leaving interest rates high for too long but said he wanted to see "more good data" on inflation before the Fed makes a change.
Thursday's unexpectedly strong report may provide just that.
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