July 12, 2023 (MLN): The U.S. consumer price index (CPI) for the month of June 2023 clocked in at 3% YoY, compared to 4% YoY in May, the latest data issued by the U.S. Bureau of labor statistics showed today.
CPI cooled more than analysts’ estimates of 3.1%.
Moreover, core CPI inflation fell to 4.8%.
This is the first time Core CPI has come in below 5.0% since Dec 2021.
On a sequential basis, US core CPI has increased by just 0.2% MoM, the slowest pace since August 2021, as expected.
Notably, CPI in the last year, June 2022 was 9.1% YoY, the highest level ever since 1981.
CPI reached a peak in June last year and has fallen sharply since then, showing that the federal reserve with its fast-paced rate hikes and balance sheet reductions has been successful in curbing inflation to a great extent.
However, it still remains somewhat above the country's 2% inflation goal.
CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
While the Core CPI measures the changes in the price of goods and services, excluding food and energy.
