© Reuters.
Investing.com — U.S. inflation rose at a slower than anticipated rate in June, although so-called “core” prices remained elevated, suggesting that the is likely to raise interest rates further at its upcoming policy meeting.
The Bureau of Labor Statistics’ closely watched increased by 3.0% annually, down from 4.0% in May. Economists had expected a rise of 3.1%.
It was the lowest level in more than two years and represented a steep deceleration from the mark of 9.1% reached last June.
On a month-on-month basis, the grew by 0.2%, up from 0.1% in the prior month. Estimates had called for 0.3%.
Meanwhile, core CPI, which strips out more volatile items like food and energy, cooled to 4.8% and 0.2% . Expectations were for both to decline to 5.0% and 0.3%.
Despite the headline number inching ever closer to the Fed’s 2% target, sticky core figures have fueled speculation that the central bank will raise interest rates later this month after pushing pause on its hiking cycle in June. According to Investing.com’s , there is a more than 91% chance that the central bank will roll out a quarter-point jump in borrowing costs at its July gathering.
