US annual consumer inflation cools to lowest since 2021

Fed Expected to , Continue Raising Rates , Despite Inflation Easing. In June, inflation in the United States hit 3%, the lowest it has reached since March 2021. . NPR reports that the news could be a sign that the Federal Reserve's aggressive rate hikes have made a noticeable impact on the economy. Despite this, the Fed is expected to continue taking action. According to the Labor Department's July 12 report, consumer prices rose just 0.2% from May to June. NPR reports that the rising cost of rent and clothing was partially offset by dropping prices for airfare, used cars and furniture. NPR reports that the rising cost of rent and clothing was partially offset by dropping prices for airfare, used cars and furniture. Last month, gas prices rose 1% but remain about 26% below what they were last year, when prices reached an all-time high of over $5 per gallon. In July, grocery prices remained flat, while the cost of eating at restaurants increased by 0.4%. . NPR reports that while inflation has slowly started to ease, it remains higher than what the Fed is looking to achieve. . Later this month, the Fed is expected to raise interest rates to reach its 2% target as "core inflation" remains high, coming in at 4.8% in June. Later this month, the Fed is expected to raise interest rates to reach its 2% target as "core inflation" remains high, coming in at 4.8% in June. Interest rates are expected to jump by a quarter percentage point at the Fed's upcoming July meeting