U.S. Inflation Falls to 3% - Plunging From Peak of 9.1% in Summer 2022

U.S. Inflation Falls to 3% - Plunging From Peak of 9.1% in Summer 2022

The U.S. Consumer Price Index (CPI) rose 3% from June 2022 to June 2023, making it the smallest increase since March 2021.

On a monthly basis, overall CPI rose 0.2% compared to the 0.1% rise in May, marking a slower pace than the 0.4% reported in the previous three months.

"Why it matters," reports Axios. "Overall inflation has plunged from a peak of 9% last summer, a relief for American consumers. The core measure, watched by economists, also showed notable signs of cooling in June."

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The 12-month change in overall CPI cooled rapidly from the 4% registered in May. Core CPI also edged down from May's 5.3%.

U.S. President Joe Biden’s chief economic adviser last Thursday expressed confidence that inflation would continue to improve in the second half of the year, and said it could drop to a range of 2% or slightly higher before the 2024 presidential election, according to Reuters. 

Main image: Unsplash/Ussama Azam