US inflation rises at slowest pace in two years

BBC: The rate of price growth in the US dropped to its slowest pace in more than two years last month, helped by cheaper used cars.
Inflation rose 3 percent in the year to June, according to data, from 4 percent in May. Inflation has fallen sharply from a peak of more than 9 percent in June 2022 and the latest reading marks the slowest pace since March 2021. The figures suggest a succession of interest rate rises have punctured soaring prices.
However, analysts still expected the US Federal Reserve to raise rates again this month.

Brian Coulton, Chief Economist at Fitch Ratings, said June’s slowdown in US inflation was “really only a small step in the right direction.” “In the context of a still tight labour market and sticky wage growth, the Fed’s recent concerns about inflation persistence are not going away, “ he said.

The rise in US inflation in June was driven by higher housing costs, the Labor Department said.
In contrast, prices for used cars and trucks dropped while the cost of food stuffs such as pork, milk and eggs declined. Many households had been struggling with higher grocery bills after the war in Ukraine disrupted global food supplies.

The figures underscore the relatively rapid progress the US has made in curbing price increases, especially compared to the UK, where inflation hit 8.7 percent in the year to May despite a number of interest rate rises.
Danny Blanchflower, a former member of the Bank of England’s rate-setting committee who is now professor of economics at Dartmouth, said that the US economy was more nimble than the UK.