- Inflation fell to its lowest annual rate in more than two years during June, the product both of some deceleration in costs and easy comparisons against a time when price increases were running at a more than 40-year high.
- The consumer price index, which measures inflation, increased 3% from a year ago, which is the lowest level since March 2021. On a monthly basis, the index, which measures a broad swath of prices for goods and services, rose 0.2%.
Why it matters
Beginning in March 2022, the Fed has implemented ten interest rate increases, resulting in rates ranging between 5% and 5.25%. In June, the Fed opted to pause its rate hike, marking the first break since the rate increases commenced.
