Inflation drops to lowest rate in nearly two years

Department of Labor building in Washington, D.C.
Department of Labor building in Washington, D.C.
Shutterstock

The Labor Department reported on Wednesday that consumer prices rose only 3 percent during the 12 months ending in June.

That’s down significantly from May’s number of 4% and is the lowest inflation rate in the U.S. since March 2021.

What contributed to this slowdown in inflation? Airline fares fell roughly 8% in June. The inflation of food prices at home has eased and was almost unchanged between May and June, while restaurant prices continued to go up.

Become A Member

Mainstreet does not have a paywall, but pavement-pounding journalism is not free. Join your neighbors who make this vital work possible.

The annualized rate of inflation has persistently—if slowly—declined since its peak of more than 9% last June. The Federal Reserve will decide in roughly two weeks if it will raise interest rates yet again. It chose not to raise interest rates at its last meeting. Mary Daly, president of the Federal Reserve Bank of San Francisco, this week said more rate hikes may be necessary to further tame inflation.

This story originally appeared in WORLD. © 2023, reprinted with permission. All rights reserved.

Subscribe
Notify of
guest
2 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
TeachYourChildren

Mr. Shumacher should correctly attribute the information he “cut and pasted” from the Department of Labor.

Still, this information is nothing to be happy about! “Only” a 3% rise in inflation for June 23? Wow! Brandon is doing such a great job for someone, but not for us taxpayers!

Jeff Gehmann

Prices are up 17% under Biden, 9% over last 12 months ending June 30. Highest in in many years. Great job of misinformation Biden!