U.S. inflation data shows smallest rise in two years

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11 個月前

STORY: Inflation in the U.S. fell to its lowest annual rate in more than two years in June.

That's according to data out Wednesday from the U.S. Labor Department, that showed consumer prices rose 3% from a year ago - the smallest annual increase since March of 2021.

And prices rose 0.2 percent on a monthly basis, a smaller rise than economists polled by Reuters had expected.

The Consumer Price Index was lifted by gasoline prices and higher rents, but it was offset by a drop in the price of used cars.

Annual consumer prices have plummeted sharply from their 9.1% peak in June 2022, which was the biggest increase in more than forty years.

Nevertheless, inflation remains well above the Federal Reserve's 2% target, with the labor market still tight.

And Wednesday's data is probably not enough to stop the Fed from raising interest rates later this month.

But traders bet on Wednesday that inflation is slowing rapidly enough to allow the Fed to stop tightening monetary policy after the widely-expected interest-rate hike at its meeting starting July 25th, as yields on futures tied to the central bank's policy rate fell.