The cost of consumer goods and services fell in June for the first time since the pandemic in 2020, affirming a recent slowdown in inflation that could impel the Federal Reserve to cut high U.S. interest rates in the next few months.
The consumer price index fell 0.1% last month after no change in May, the government said Thursday. That's the first drop since May 2020 at the height of the pandemic when the economy was mostly shut down.
The 12-month rate of inflation also slowed to 3% from 3.3% and matched the lowest level since April 2021.
The more closely followed core CPI that strips out food and energy rose just 0.1% for the second month in row. It came in under Wall Street's 0.2% forecast.
Those are the slowest back-to-back readings in the core CPI in more than three years.
The yearly rate of core inflation slowed to 3.3% from 3.4%.
