Inflation in the United States decreased slightly more than expected in June.
The consumer price index rose 3% last month, then 3% year-on-year increased by 3.3% in May, according to data released Thursday by the US Department of Labor. Economists polled by the Wall Street Journal expected inflation to be 3.1% in June.
The main index, which excludes volatile food and energy prices, rose 3.3% year-on-year last month, after rising 3.4% in May. Economists had expected core inflation to be unchanged at 3.4% in June.
Low rates
Within a month, the general consumer price index decreased by 0.1% in June, and the core inflation was 0.1%. In May, the general index did not change for a month and the base inflation was 0.2%. Economists expected core inflation to be 0.1% in June and core inflation to be 0.2% compared to May.
In reaction to this lower-than-expected data, the yield on the 10-year US sovereign bond fell more than 8 basis points at 2:30 p.m. on Thursday, hitting its lowest level since last March at 4.17%. According to CME Group’s FedWatch tool, the probability that the US central bank will cut interest rates at its September meeting now exceeds 85%, compared with 73% on Wednesday.