Inflation Falls to 2.8% in June

CPI Shows Broad-Based Slowdown

Deceleration Driven by Falling Gas Prices

The Consumer Price Index (CPI) rose 2.8% year-over-year in June, following a 3.4% increase in May. This represents a sharp decline from the 3.4% inflation rate reported in April. The slowdown was broad-based, with price increases moderating across most major categories.

The largest contributor to the decline in inflation was a sharp drop in gasoline prices. Gas prices fell by 12.7% in June, after rising by 12.2% in May. This brought the annual inflation rate for gasoline down to 35.0%, from 48.0% in May.

Excluding gasoline, the headline inflation figure would have been 4.0% in June, down from 4.4% in May. This suggests that the underlying inflation trend is still moderating, despite the recent uptick in gas prices.

The deceleration in inflation is likely to be welcomed by both consumers and policymakers. Consumers are struggling with rising costs of living, and a slowdown in inflation will help to ease some of the financial pressure. Policymakers are also concerned about the impact of inflation on the economy, and a slowdown in inflation will give them more room to maneuver.

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