Inflation unexpectedly falls to 3% in June

Inflation cooled more than expected in June, a welcome sign for the Federal Reserve even as prices remained uncomfortably high for millions of Americans.

The Labor Department on Thursday said that the consumer price index (CPI), a broad measure of how much everyday goods like gasoline, groceries and rent cost, dropped 0.1% in June from the previous month. Prices remain up 3% from the same time last year. 

Both of those figures are lower than the 0.1% monthly increase and 3.1% headline gain forecast by LSEG economists.

Another data point that measures underlying inflationary pressures within the economy also moderated last month. So-called core prices, which exclude the more volatile measurements of gasoline and food in order to better assess price growth trends, increased 0.1% in June. From the same time last year, the gauge climbed 3.3% — the lowest reading since April 2021.

This is a developing story. Please check back for updates.