Inflation remains elevated, with rent and home payments arguably the biggest drivers behind the sticky price increases as the shelter index stays well above where it was in the 2000s housing bubble.
Topline
Inflation moderated to its lightest level in years, the federal government reported Thursday morning, coming in far better than economist estimates as Americans and policymakers alike look to put this inflationary cycle in the rearview mirror. Key Facts
Inflation was 3% in June, according to year-over-year changes in the Bureau of Labor Statistics’ consumer price index metric, the best inflation mark since June 2023’s 3%.
That is far better than May’s 3.3% headline CPI inflation and beats consensus economist forecasts of 3.3%, according to FactSet, the most palatable mark since April 2021.
Consumer prices declined 0.1% from May to June, lighter than estimates of 0.1%, beating April to May’s 0% change and dipping month-over-month for the first time since 2020.
Core inflation, which excludes the more price sensitive food and energy inputs, was 3.3% last month, besting projections of 3.4%, where it stood in May.
Both inflation measures are well above policymakers’ 2% target, but are much more palatable than they were in the recent past, with headline inflation down about six percentage points from its four-decade high of 9.
