US consumer inflation eases sharply to 3% in June

By Ovunc Kutlu

ISTANBUL (AA) - Annual consumer inflation in the US came in at 3% in June, marking the lowest level in more than two years, easing sharply from 4% in May, according to official figures released on Wednesday.

The consumer price index (CPI), which measures changes in the prices of goods and services from a consumer's perspective, also came below the market estimate of 3.1%.

The figure was the smallest 12-month increase since the period ending March 2021, and marked a sharp decline from last June's 9.1% yearly gain – the largest since November 1981.

On a monthly basis, CPI rose 0.2% in June from the previous month, also coming in lower than the market expectation of 0.3%. The gain in May was unrevised at 0.1%.

"The food index increased 0.1 percent in June after increasing 0.2 percent the previous month," said a Labor Department statement. "The energy index rose 0.6 percent in June as the major energy component indexes were mixed."

Core CPI, which excludes volatile food and energy prices, gained 0.2% in June from the previous month, also coming in lower than market estimates of 0.3%, while the May reading was unrevised at 0.4%.

Annually, core CPI rose 4.8% in June, also lower than the market expectation of 5%, after it rose 5.3% in May year-on-year.

"The energy index decreased 16.7 percent for the 12 months ending June, and the food index increased 5.7 percent over the last year," said the statement.