US inflation cooled in June for the 12th straight month (Photo by Robert Nickelsberg/Getty Images) Robert Nickelsberg/Getty Images The inflation rate for food and other durable goods was 9.7% in May, 2023. SOUTH BURLINGTON, VERMONT - JULY 1: Customers checkout groceries at a Hannaford supermarket Jin South Burlington, Vermont. Still, underlying inflation is showing a cooling trend as well - albeit more muted. In June, inflation as measured by the CPI cooled to 3% annually, its lowest rate since March 2021, the BLS reported Wednesday.īoth the CPI and PPI have declined monthly since their peaks in June 2022, when record-high energy and gas prices fueled the spikes to 9.1% and 11.2%, respectively.Īs such, the base effects of year-over-year comparisons are playing a part in the indexes’ sharp retreats. “You saw that in CPI, and now you’re seeing it in PPI.” “It’s definitely a good month for inflation,” Pelle told CNN. While the PPI doesn’t directly correlate into exactly what will come from the following month’s Consumer Price Index - a major inflation gauge that tracks price shifts for a basket of goods and services - it provides a look at whole economy inflation, minus rents, said Alex Pelle, Mizuho Securities US economist.Īnd that picture right now is looking pretty sharp. PPI is a closely watched inflation gauge since it captures average price shifts before they reach consumers and is a proxy for potential price changes in stores. As such, prices for services - which increased 0.2% from May - were the primary driver behind June’s slight increase. Goods prices held steady for the month, after tumbling 1.6% in May, according to the BLS report. Watchara Phomicinda/MediaNews Group/The Press-Enterprise/Getty Images A worker monitors the processing of tortilla chips at the La Reina Tortilla factory in San Bernardino, California, on June 29, 2023.
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