Consumer price growth falls for 12th-consecutive month to 3%

Consumer prices continued their decline in June for the 12th month in a row, falling to 3%.

While forecasts predicted that consumer price increases would slow to 3.1% in June, just above the Federal Reserve’s 2% inflation target, the “core” inflation figure, which reflects everything except food and energy prices, hit 4.8% compared to 5.5% in May.

Economist Riccardo Trezzi warns that hitting the 2% core inflation target may require an unemployment pickup. Despite the Fed’s efforts to raise interest rates and slow demand, the momentum from extreme measures taken during the COVID-19 pandemic continues to be felt, and the impact of interest rate hikes will take time to fully reflect in the broader economy.

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