US inflation drops to 12-month low in June

11th Jul 2024 08:52

(Sharecast News) - US inflation dropped to its lowest level in a year in June, tying the smallest rate of price growth since early 2021, according to figures released on Thursday from the Department of Labor Statistics.

The annual change in the consumer price index slowed to 3.0% last month, down from 3.3% in May, marking the third month of disinflation.

This was below the consensus forecast of 3.1% and the lowest level since June 2023. Inflation hasn't fallen below that level since March 2021.

Meanwhile, core inflation, which strips out volatile items like food and energy, unexpectedly eased to 3.3% from 3.4%, surprising economists who had projected no change. This was also the lowest level since April 2021.

Energy price inflation during June eased considerably, to just 1.0% from 3.7% the month before, as gas price growth turned negative at -2.5% from +2.2% and fuel oil growth slowed to 0.8% from 3.6%.

Ahead of the opening bell on Wall Street, US stock futures turned positive following the data release, with investors hoping that an easing of price growth may encourage the Federal Reserve to cut interest rates sooner than planned.