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The inflation rate continues to slow down, with prices 3% higher month-over-month from May. It is the 12th consecutive month that inflation has slowed and is a far cry from last June when inflation soared to 9.1%.
Shelter costs remain high and account for about 70% of the increase. However, those increases were offset a bit by lower energy costs, with the price of gasoline falling by over 25% in the past year. The cost of airfare has also plummeted, with fares just over 8% lower in June than in May.
This is the last economic report before the Federal Reserve meets at the end of the month to discuss whether to raise interest rates. Last month, the Fed decided not to raise the interest rate following ten straight increases.
“The Fed’s overriding goal right now is to get inflation down. We’re going to succeed at it, and to do that without a recession would be a triumph,” Austan Goolsbee, president of the Chicago Federal Reserve, said in a Squawk on the Street interview. “That’s the golden path, and I feel like we’re on that golden path. So I hope we keep putting off the recession to forever.”