SFS Insights: Inflation in US Decelerates by More Than Forecast
- Wednesday’s June Inflation report came in below economists’ consensus forecasts for both headline and core.
- Consumer prices rose 0.2% in June, pushing the annual rate of inflation down to 3.0%, the lowest annual rate since March 2021.
- More importantly, inflation, excluding food and energy rose 0.2% in June, the smallest monthly gain since August 2021.
- Although the Federal Reserve (Fed) is expected to raise rates during this month’s Federal Open Market Committee (FOMC) meeting on July 25-26, further evidence of ebbing inflation pressure increases the chances that this month marks the last hike of this Fed rate hiking cycle.
