U.S. inflation slowed during the April-June period, or the second quarter of 2024.
The U.S. Bureau of Labor Statistics stated that by June 2024, the inflation rate had reached 3% (year-on-year), the lowest since June of the previous year.
According to John Veit, Chief Investment Officer at J.P. Morgan, this is "encouraging" data.
"Inflation is cooling broadly. We're finally seeing encouraging movement with lower shelter price pressures. We're also seeing beneficial declines in gasoline and airfare prices," said John Veit in a report on the J.P. Morgan website (July 12, 2024).
John Veit believes that the slowing inflation rate could prompt the U.S. central bank, the Federal Reserve, to consider lowering its benchmark interest rate.
"In our view, this is an encouraging report for the Federal Reserve, which should further increase confidence that inflation is on its way back to the 2% target," he said.