Report: Favored Inflation Gauge Increased 2.5% In February Preferred By Fed
One AmericaMar 22
US Inflation Slows to 3% in June
Image copyright: Mario Tama/Staff/Getty Images News via Getty Images
The Facts
US annualized inflation cooled to 3% in June, down from 3.3% in May, according to Thursday's report by the Labor Department. Meanwhile, monthly consumer prices fell 0.1%, marking the first decline in the Consumer Price Index (CPI) since May 2020.
While core inflation, calculated without volatile food and energy prices, rose 0.1%, a steep fall in gasoline and overall energy costs dragged down the headline CPI.
The Spin
Democratic narrative
Thursday's report highlights the success of Bidenomics, showing the economy's resilience and progress. Despite predictions of a recession and the need for high unemployment to curb inflation, the US has experienced robust growth, low unemployment, and falling inflation.
Republican narrative
Despite a slight decline to a 3% annual rate, many Americans remain frustrated by years of high prices. While the Fed may cut rates soon, the effects of prolonged inflation and elevated interest rates linger. The core inflation rate, at its lowest since April 2021, isn't enough to reverse consumer hardships.