After a spike in inflation that lasted many months, consumer prices experienced their third straight month of decline.
Consumer prices declined by 0.1 percent from May to June.
The big picture: The June figures signal that inflation may have returned to the Federal Reserve’s target of 2 percent, after a period where high rates of inflation impacted the benchmark rate.
- With economists predicting that the cooling inflation could continue through the summer, the Federal Reserve may be considering cutting its benchmark rate sometime soon.
- The cost of necessities like healthcare, food, rent and homeownership remain significantly higher than pre-pandemic levels, even as inflation rates have continued to decline.
