Cooler June inflation is a win for the Fed, which has been looking for concrete signs that price pressures are easing before it begins cutting rates.
US stocks edged higher on Thursday after the June consumer price index report showed inflation cooled more than anticipated last month.
The S&P 500 and Nasdaq hovered near record highs. The 10-year Treasury yield dropped nine basis points to 4.181%, while the two-year note fell 14 basis points to 4.49%.
Last month, CPI rose 3% on an annual basis versus expectations of 3.%. Month-over-month, CPI declined 0.1%, on expectations for a 0.1% rise.
A drop in gas prices helped the broader reading, and high housing costs also showed signs of easing, recording their slowest rate of growth since 2022.
The reading should help pave the way for the Federal Reserve to start cutting interest rates.
