Inflation Falls Below 3% for First Time Since 2021
CPI Shows Slowdown in Price Growth
Economists Cite Easing Supply Chain Disruptions, Lower Energy Costs
WASHINGTON, D.C. — The U.S. Bureau of Labor Statistics (BLS) has reported that inflation as measured by the Consumer Price Index (CPI) fell to 2.9% in June 2023, marking the first time inflation has dropped below 3% since March 2021.
The CPI measures the average change in prices for a basket of goods and services purchased by urban consumers. The June decline was driven by a 0.1% decrease in the seasonally adjusted CPI, with decreases in energy, food, and used car prices.
Economists have attributed the slowdown in inflation to easing supply chain disruptions, which have reduced costs for businesses. Lower energy costs have also contributed to the decline.
The Federal Reserve has been raising interest rates to combat inflation, but officials have indicated they may slow the pace of rate hikes as inflation shows signs of moderating.
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