CPI inflation rate falls from 3.3% in May to 3% in June, the lowest since April 2021, missing the 3.1% estimate.
by Piero Cingari
Benzinga.com
The stars seem to be aligned for a reduction in U.S. interest rates in about two months, as the June inflation report released Thursday may provide policymakers with the confidence that annual consumer price changes are finally trending toward the Fed’s 2% target.
The inflation rate fell from 3.3% in May 2024 to 3% year-over-year in June 2024, the lowest since April 2021, according to the Bureau of Labor Statistics. The outcome fell short of the estimated 3.1%. On a month-over-month basis, the consumer basket contracted by 0.1%, marking the first negative reading since May 2020.
The data sparked a surge in rate cut bets, triggering a rally in interest-rate-sensitive assets.