Inflation Slowed More Than Expected in June
Summary from the AllSides News Team
According to the Bureau of Labor Statistics, the monthly inflation rate fell slightly in June.
Key Details: The Consumer Price Index (CPI), a measure that excludes food and energy prices, declined 0.1% from May. This is 3% higher than June 2023, but is lower than the 0.1% increase that some economists expected. This may increase the chances that the Federal Reserve will lower interest rates in September.
Key Quote: "After a lack of progress toward our 2 percent inflation objective in the early part of this year, the most recent monthly readings have shown modest further progress," Federal Reserve chair Jerome Powell told lawmakers on Tuesday,
For Context: Powell told lawmakers that a weakening labor market is just as much of an economic risk as high inflation.
How the Media Covered it: Fox Business (Lean Right bias) noted that while the cooling of inflation was a welcome sign for the Federal Reserve, consumers are still facing uncomfortably high prices. NBC News (Lean Left bias) noted that the economic growth cycle is still working against the re-election chances for President Joe Biden, as inflation has increased by approximately 20% since Biden took office.
Featured Coverage of this Story
From the Center
Milder Inflation Keeps Door Open to September Rate Cut
U.S. inflation eased in June even more than economists had expected, extending a recent slowdown in price increases and boosting investors’ hopes that the Federal Reserve could soon start cutting interest rates.
The consumer-price index, a measure of goods and services costs across the economy, rose 3.0% from a year earlier, the Labor Department said Thursday, and fell 0.1% since May.
Core prices, which exclude volatile food and energy items, climbed 3.3% over the previous 12 months and 0.1% since May. All results marked a decline from the previous month and were lower...
From the Left
Inflation continues to slow in the U.S., opening door to Fed rate cut
Price increases in the U.S. slowed more sharply than expected in June, adding to evidence that high inflation has subsided and potentially clearing the way for the Federal Reserve to lower a key interest rate that influences everything from mortgages to credit card payments.
The Consumer Price Index rose 3% year over year in June — and declined by 0.1% from May. That compares with a 3.3% annual reading last month.
The report will only add to hopes that the Federal Reserve will cut interest rates this fall, a move meant to offset slowing economic...
From the Right
Inflation unexpectedly falls to 3% in June
Inflation cooled more than expected in June, a welcome sign for the Federal Reserve even as prices remained uncomfortably high for millions of Americans.
The Labor Department on Thursday said that the consumer price index (CPI), a broad measure of how much everyday goods like gasoline, groceries and rent cost, dropped 0.1% in June from the previous month. It marked the first monthly decline since May 2020. Prices remain up 3% from the same time last year.
Both of those figures are lower than the 0.1% monthly increase and 3.1% headline gain...
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