STORY: U.S. CPI up 3.0 pct in June as inflation continues to cool
SHOOTING TIME: July 11, 2024
DATELINE: July 12, 2024
LENGTH: 00:01:41
LOCATION: Washington D.C.
CATEGORY: ECONOMY

SHOTLIST:
1. various of a gas station in Arlington, U.S. state of Virginia
2. various of street views of Arlington, U.S. state of Virginia
3. various of a grocery store in Arlington, U.S. state of Virginia

STORYLINE:

U.S. consumer inflation in June increased 3.0 percent from a year ago, after climbing 3.3 percent in May and 3.4 percent in April, the U.S. Labor Department reported Thursday.
   
According to the report released by the Bureau of Labor Statistics, the Consumer Price Index (CPI) declined 0.1 percent on a seasonally adjusted basis after remaining unchanged in May. In April, CPI rose 0.3 percent.
   
The latest inflation report showed that the so-called core CPI, which excludes food and energy, increased 0.1 percent in June after rising 0.2 percent in May and 0.3 percent in April. Core CPI has risen 3.3 percent over the last 12 months, the smallest 12-month increase in that index since April 2021.
   
The energy index fell 2.0 percent over the month, as it did the preceding month. The index for food increased 0.2 percent in June.
   
Indexes that increased in June include shelter, motor vehicle insurance, household furnishings and operations, medical care and personal care. The indexes for airline fares, used cars and trucks, and communication were among those that decreased over the month.
   
The latest data came after U.S. Federal Reserve Chair Jerome Powell indicated earlier this week that the central bank was inching closer to a rate cut decision, but greater confidence in progress on inflation is needed before taking such action.
   
"We want to be more confident, we want to have greater confidence, and that means more good inflation readings that inflation is moving sustainably down to 2 percent," Powell said in a hearing before the House Financial Services Committee on Wednesday.
   
The Fed chair reiterated that the central bank will make decisions based on economic data and will not consider political factors. The central bank is expected to cut rates before the Nov. 5 election.
   
The Fed's next meeting is scheduled for July 30-31. Officials are expected to keep the benchmark interest rate unchanged at a 22-year-high range of 5.25 percent to 5.5 percent, which was approved in July last year.
   
The Chicago Mercantile Exchange Group's FedWatch Tool, which acts as a barometer for the market's expectation of the Fed funds target rate, showed that the probability of the Fed maintaining rates at the July meeting is over 95 percent as of Thursday. The probability of a rate cut at the September meeting is 66 percent.

Xinhua News Agency correspondents reporting from Washington D.C.
(XHTV)