Washington, DC
US inflation slows:The pace of rising consumer prices in the US slowed to 3% year on year in June from 4% in May, and to within a single percentage point of the Federal Reserve’s 2% target, says Gwynn Guilford in The Wall Street Journal. Inflation, according to the consumer price index (CPI), is now rising at its slowest rate since March 2021, and well below the recent peak of 9.1% in June last year, as underlying price pressures have eased. Used-car prices and airline fares have fallen sharply, although services inflation is continuing to prove “sticky”. “Core” consumer price inflation, which strips out volatile food and energy costs, fell from 5.3% in June to 4.8% last month, compared with a year earlier, and from 0.4% to 0.2% on a monthly basis.
“Anyone who has ever tried to lose weight will tell you... the last inch is always the hardest to shift,” says AJ Bell’s Danni Hewson. Core inflation is “still too hot”. That means Fed chief Jerome Powell (pictured) and
