Annual inflation in the US slowed to 3%

The Consumer Price Index (CPI) in the US increased by 0.2% in June compared to an increase of 0.1% a month earlier. In annual terms, price growth slowed to 3% after 4% and 4.9% in the previous two months, thus updating the minimum since March 2021. reported US Federal Bureau of Labor Statistics.

The rise in consumer prices was driven mainly by rising petrol and rental prices. The growth of core inflation (does not take into account food and energy prices, the Core CPI index) continued to slow down. In June, this figure rose by 4.8% after 5.3% in May and 5.5% in April. At the same time, for the first time in six months, the monthly increase in this indicator turned out to be less than 0.4%, amounting to only 0.2%.

The published data turned out to be better than expected: economists polled by Reuters expected prices to rise by 0.3% in monthly terms and 3.1% in annual terms. Agency thinksthat the slowdown in inflation is not fast enough, so the US Federal Reserve System (FRS) is likely to return to raising the key rate at the next meeting.

On June 14, the Fed kept the base rate at the level of 5-5.25% per annum. The regulator noted the growth of economic activity at a “moderate pace”. Unemployment remains low, while inflation is still elevated. Inflation in the US in June slowed to 4% in annual terms from 4.9% a month earlier, which was the lowest level since May 2021. The target level for inflation in the US is 2%.

Earlier on July 9, US Treasury Secretary Janet Yellen statedthat the country is now “too high inflation.” According to her, the way to reduce inflation is connected with a “healthy labor market”. She added that, according to the data available to the Treasury Department, the United States is on this path. At the same time, she did not completely rule out the possibility of a recession in the country.