US annual consumer inflation cools to lowest since 2021

WASHINGTON: Annual consumer inflation in the United States cooled in June to its lowest rate since 2021 the Labor Department said Wednesday, an encouraging sign for policymakers battling to rein in cost pressures. The key inflation gauge, the consumer price index (CPI), rose 3.0% from a year ago last month, down from 4.0% in May and slightly lower than analysts expected. The US central bank has raised interest rates rapidly over the last year to ease demand and bring down price increases. While Federal Reserve officials have signalled that further rate hikes are likely needed to bring inflation back to their 2% target, the June CPI report raises market doubts about the number of additional increases needed down the line. June's consumer inflation figure marks the lowest annual rate in more than two years. In another positive sign, the monthly "core" rate -- excluding the volatile food and energy components -- came to its lowest reading since 2021. While the index for shelter remained the "largest contributor" to the overall monthly increase and the index for motor vehicle insurance also contributed, other areas saw declines including airline fares and used vehicles, the Labor Department said in a statement. By RSS/AFP READ ALSO:

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