US inflation falls to 3%, lowest level in more than 2 years

After two years of painfully high prices, inflation in the United States has reached its lowest point in more than two years — three per cent in June compared with 12 months earlier — a sign that the Federal Reserve’s interest rate hikes have steadily slowed price increases across the economy.

The inflation figure the government reported Wednesday was down sharply from a four per cent annual rate in May, though still above the Fed’s two per cent target rate. Over the past 12 months, gas prices have dropped, grocery costs have risen more slowly and used cars have become less expensive. From May to June, overall prices rose 0.2 per cent, up from just 0.1 per cent in the previous month but still comparatively mild.

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