US Inflation Broadly Cools, Likely Sealing Deal for Fed Rate Cut
- Core consumer prices rise 0.1%, smallest gain since August ‘21
- Traders all but fully price in September, December rate cuts
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US inflation cooled broadly in June to the slowest pace since 2021 on the back of a long-awaited slowdown in housing costs, sending the strongest signal yet that the Federal Reserve can cut interest rates soon.
The so-called core consumer price index — which excludes food and energy costs — climbed 0.1% from May, the smallest advance in three years, Bureau of Labor Statistics figures showed Thursday. The overall measure fell for the first time since the onset of the pandemic, dragged down by cheaper gasoline.