The News
US inflation rates fell in June — and as a result, interest rates may soon fall, too. A new report from the Bureau of Labor Statistics found prices in June rose 3.0% compared to last year, and that inflation has remained effectively flat month-on-month through May and June.
The overall inflation rate has dropped to a three-year low. Consumer prices fell 0.1% in June from May, although “core prices” rose by 0.1%, and food prices rose 0.2%.
Still, the continued cooling may move the Fed closer to cutting interest rates, currently predicted for September, albeit likely by a modest 0.25% — enough to offer some reprieve to borrowers after years of increases that have put significant pressure on the economy.
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