London, Wednesday, 12 July 2023
The annual inflation rate in the US slowed to 3% in June of 2023, the lowest since March of 2021 and compared to 4% in May and expectations of 3.1%.
The slowdown is partly due to a high base effect from last year when a surge in energy and food prices pushed the headline inflation rate to 1981-highs of 9.1%. Energy cost slumped 16.7% (vs -11.7% in May), with prices falling 36.6% for fuel oil, 26.5% for gasoline, and 18.6% for utility gas service.
Electricity prices increased by 5.4%. Also, inflation slowed for food (5.7% vs 6.7% in May) and shelter (7.8% vs 8%).
Clothing (3.1% vs. 3.5%), new cars (4.1% vs. 4.7%), and transport services (8.2% vs. 10.2%) all saw lessening price rises. Medical service costs decreased by 0.8%, while used car and truck prices fell by 5.2%. Since October 2021, the core inflation rate has plummeted to a record-low 4.8%.
Source: U.S. Bureau of Labour Statistics 