Inflation & Prices
US Inflation Hits Two-Year Low, Giving Hope for End to Fed Hikes
- Consumer prices rose at slowest annual pace since 2021
- Fed July hike still likely, but future increases less certain
US inflation sharply cooled last month, offering fresh hope that the Federal Reserve can soon wrap up the most aggressive interest-rate hikes in decades.
The consumer price index rose 3% last month from a year ago, the smallest advance in more than two years, according to data out Wednesday from the Bureau of Labor Statistics. Excluding food and energy, the core CPI — which economists view as the better indicator of underlying inflation — advanced 4.8%, also the lowest since 2021.