Inflation Cools More Than Expected

The latest inflation numbers suggest that our years-long spike in prices is starting to truly ease—which could make the Fed more likely to cut interest rates.

• Key stats: Consumer prices declined 0.1% from May to June, even though analysts had expected them to rise by the same percentage, reports CNBC. Prices were up 3% compared to a year ago, while closely watched core prices—which exclude volatile food and energy swings—were up 3.3%, per the Wall Street Journal. The annual 3% rate is around its lowest level in more than three years.

• Trend: Inflation has now declined for three straight months, notes the AP. With annual inflation now running at 3%, the Federal Reserve's target of 2% is coming into view, which could make the central bank more willing to cut rates, perhaps as soon as September.
• Wall Street: The better-than-expected inflation numbers quickly put Wall Street in a good mood. Dow futures gained more than 70 points, and all the major indexes were poised to open in positive territory, per CNBC.

(More inflation stories.)