The GuardianThe Guardian

US inflation rate down to 3% in June, a two-year low, but prices remain high

By Lauren Aratani

12 Jul 2023 · 2 min read

informed Summary

  1. US goods and services prices hit a two-year low in June, indicating that the Federal Reserve's rapid interest rate increases are damping inflation. The consumer price index rose 3% over the past year, down from a 9.1% high in June 2022.

The prices of US goods and services hit a two-year low in June, a sign that inflation is continuing to ease as the economy responds to the US Federal Reserve’s rapid increases in interest rates.

The latest consumer price index (CPI) figures, which measure the prices of a basket of goods and services, increased 3% over the last year. This was the smallest increase since March 2021 and down from a four-decade high of 9.1% in June 2022 as pandemic supply chain issues clashed with burgeoning consumer demand.

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