US inflation is expected to have dropped to its lowest level in more than two years in June, but stubbornly high price gains for “core” products and services mean the slowdown is unlikely to derail expectations that the Federal Reserve will resume rising interest rates later this month.
The annual increase in the consumer price index is forecast to moderate to 3.1 per cent from 4 per cent in May, according to economists surveyed by Refinitiv. That would mark the slowest rate of inflation since March 2021.
Prices are expected to increase 0.3 per cent on a monthly basis in June, up from 0.1 per cent the previous month, but the annual figure will be helped by so-called base effects, as extremely large rises from June 2022 drop out of the calculations. Official figures will be released at 8.30 Eastern Time on Wednesday.