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Economic news
11.07.2024

U.S. annual inflation eases more than anticipated in June

The Labor Department reported on Thursday the U.S. consumer price index (CPI) slipped 0.1 per cent m-o-m in June, following an unrevised flat m-o-m performance in the previous month. This marked a break in a 48-month streak of monthly gains in prices.

Over the last 12 months, the CPI increased by 3.0 per cent y-o-y, decelerating from an unrevised advance of 3.3 per cent y-o-y reported for the period ending in May. This was the weakest 12-month rise since June 2023 (+3.0 per cent). 

Economists had forecast the U.S. CPI to increase 0.1 per cent m-o-m and 3.1 per cent y-o-y.

According to the report, the index for gasoline declined 3.8 per cent m-o-m, more than offsetting a 0.2 per cent m-o-m gain in the shelter index. Meanwhile, the index for food went up 0.2 per cent m-o-m.

The core CPI, excluding volatile food and fuel costs, edged up 0.1 per cent m-o-m in June after an unrevised 0.2 per cent m-o-m rise in the previous month. This was the weakest monthly increase in core CPI since August 2021 (+0.1 per cent m-o-m).

In the 12 months through June, the core CPI jumped by 3.3 per cent, following an unrevised 3.4 per cent jump for the 12 months ending May. This marked the weakest 12-month increase since April 2021 (+3.0 per cent). 

Economists had foreseen the core CPI to rise by 0.2 per cent m-o-m and 3.4 per cent y-o-y for June.

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