June CPI Drop Sparks Hope for September Rate Cuts 📉

The Consumer Price Index declined by ten basis points in June, marking the first monthly decrease since May 2020. The 12-month CPI rate fell to 3%, around its lowest level in over three years. A drop in gasoline prices helped pull down overall inflation for the month. Real average hourly earnings rose 0.4% in June but were up just 0.8% over the past year. The inflation data supports expectations for the Federal Reserve to start lowering interest rates in September.