US inflation continues to retreat

US inflation fell Thursday to levels below market expectations, according to data released by the US Bureau of Labour Census. The decline in inflation favors expectations of a rate cut, especially after Federal Reserve Chairman Jerome Powell’s testimony on economic conditions before the US Congress.

The US consumer price index fell last June by -0.1% compared to the reading recorded the previous month at 0.0%, according to the monthly reading, which fell below market expectations, which indicated 0.1%.

The annual reading of the US Consumer Price Index also recorded an increase of 3.00% last June, compared to the reading of the same month last year, which recorded 3.3%. The actual reading for last month was lower than market expectations, which indicated 3.1%.

Excluding food and energy prices, the index recorded an increase of 0.1% last month compared to the reading recorded the previous month at 0.2%, indicating levels lower than market expectations, which indicated 0.2%.

The annual reading of the index rose to 3.3% last June compared to the reading of the same month last year, which recorded 3.4%, which highlights the decline more than expected to the same level recorded in the previous reading.