US Consumer Price Increase Slows, Fuels Speculation of Federal Reserve Rate Cut

Consumer price increases in the US saw a significant slowdown in June, surprising analysts and potentially signaling relief from high inflation pressures. According to the Bureau of Labor Statistics, the Consumer Price Index dropped by 0.1% month-over-month, reducing the annual inflation rate from 3.3% in May to 3%. This decline was driven by lower gas prices and reduced costs for new and used cars, marking the first monthly decrease since May 2020. The prospect of easing inflation has boosted US stock futures, with investors anticipating possible interest rate cuts by the Federal Reserve to mitigate economic strain caused by persistently high rates.