Inflation unexpectedly falls to 3% in June

The Labor Department on Thursday released the closely watched June consumer price index report, revealing just how hot inflation was running last month.

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.