After two years of painfully high prices, inflation in the United States has reached its lowest point in more than two years -- three per cent in June compared with a year earlier -- thanks in part to easing prices for gasoline, airline fares, used cars and groceries.
The inflation figure the government reported Wednesday was down sharply from a 4 per cent annual rate in May, though still above the Federal Reserve's two per cent target rate. From May to June, overall prices rose 0.2 per cent, up from just 0.1 per cent in the previous month but still comparatively mild.
Even with Wednesday's better-than-expected inflation data, the Fed is considered all but sure to boost its benchmark rate when it meets in two weeks. But with price increases slowing -- or even falling outright -- across a broad range of goods and services, many economists say they think the central bank could hold off on what had been expected to be another rate hike in September, should inflation continue to cool.
"It takes the second hike off the table, if that trend continues," said Laura Rosner-Warburton, senior economist at MacroPolicy Perspectives. "They're probably on hold for the rest of the year."
On Wall Street, investors cheered the encouraging inflation news, sending stock and bond prices sharply higher.
The Fed has raised its benchmark rate by a substantial five percentage points since March 2022, the steepest pace of increases in four decades. Its expected hike this month will follow the central bank's decision to pause its rate increases last month after 10 consecutive hikes.
Over the past two months, inflation has slowed rapidly -- from nearly five per cent in April to just three per cent now. Much of that progress reflects the fading of big spikes in food and energy prices that followed Russia's invasion of Ukraine last spring.
Other major drivers of higher prices, though, are also beginning to fade. Used car prices sank 0.5 per cent from May to June, after two months of big spikes. And rental costs slowed further in June, reflecting the construction of more apartments across the country.
Excluding the volatile food and energy prices, so-called core inflation was lower last month than economists had expected, rising just 0.2 per cent from May to June, the smallest monthly increase in nearly two years. Compared with a year ago, it does remain relatively high, at 4.8 per cent, but down from a 5.3 per cent annual rate in May.
Some economists have suggested that if inflation keeps slowing and the economy shows sufficient signs of cooling, the July increase could be the Fed's last.
The year-over-year inflation figure for June marked the mildest such increase since March 2021, when the current bout of painfully high inflation began as the economy roared out of the pandemic recession.
Used-car prices, among other items, have been falling. Automakers are finally producing more cars as supply shortages have abated. New-car prices, too, have begun to ease as a result.
A sustained slowdown in inflation could bring meaningful relief to American households that have been squeezed by the price acceleration that began two years ago. Inflation spiked as consumers ramped up their spending on items like exercise bikes, standing desks and new patio furniture, fueled by three rounds of stimulus checks. The jump in consumer demand overwhelmed supply chains and ignited inflation.
Many economists have suggested that President Joe Biden's stimulus package in March 2021 intensified the inflation surge. At the same time, though, inflation also jumped overseas, even in countries where much less stimulus was put in place. Russia's invasion of Ukraine also triggered a spike in energy and food prices globally.
Now, though, gas prices have fallen back to about US$3.50 a gallon on average, nationally, down from a US$5 peak last year. And grocery prices are rising more slowly, with some categories reversing previous spikes.
Egg prices, for instance, have declined to a national average of US$2.67 a dozen, down from a peak of US$4.82 at the start of this year, according to government data. Egg costs had soared after avian flu decimated the nation's chicken flocks. Despite the decline, they remain above the average pre-pandemic price of about US$1.60. Milk and ground beef remain elevated but have eased from their peak prices.
Still, the cost of services, like restaurant meals, car insurance, child care and dental services, continue to rise rapidly. Auto insurance, on average, now costs 17 per cent more than it did a year ago.
Prime Minister Justin Trudeau said many Canadians are taking their cost-of-living frustrations 'out on me for understandable reasons,' during his U.S. late-night television debut on 'The Late Show' with Stephen Colbert Monday night.
While many Canadians no longer stress as much about COVID-19 as they did during its peak, health experts say a new variant has been spreading in some parts of the world and is now present in Canada.
Israel and Hezbollah traded strikes again Tuesday as the death toll from a massive Israeli bombardment climbed to nearly 560 people and thousands fled from southern Lebanon with the two sides on the brink of all-out war.
B.C.’s Civil Resolution Tribunal has ordered WestJet to refund a family in full for their diverted flight and compensate them for associated costs.
A new analysis of dozens of arrowheads is helping researchers piece together a clearer portrait of the warriors who clashed on Europe’s oldest known battlefield 3,250 years ago.
The sprint to the White House comes to its climactic end less than 45 days from now, and Washington political analyst Eric Ham says despite Kamala Harris's rising popularity, she's still in need of another breakthrough if she's to win the presidency.
The House of Commons is set to debate a Conservative non-confidence motion today, as the Tories try to take down Prime Minister Justin Trudeau's government.
It's been exactly three years since Canadian Michael Kovrig returned to Canada after spending 1,019 days in a Chinese prison. Now, he's publicly speaking out about his arrest and detainment for the first time.
On Sept. 20, Justice R.E. Nation of the Alberta Court of King's Bench found Craig McMorran guilty of fraud, money laundering and stealing a cottage from its rightful owners.
On Sept. 20, Justice R.E. Nation of the Alberta Court of King's Bench found Craig McMorran guilty of fraud, money laundering and stealing a cottage from its rightful owners.
It's been exactly three years since Canadian Michael Kovrig returned to Canada after spending 1,019 days in a Chinese prison. Now, he's publicly speaking out about his arrest and detainment for the first time.
Ontario's police watchdog is investigating after a Durham officer discharged a Taser and an anti-riot weapon at a 15-year-old boy in north Oshawa on Sunday.
The City of Montreal has issued a lockdown notice for residents in the Mercier-Hochelaga-Maisonneuve borough due to smoke from a fire in a container storing 15,000 kilograms of lithium batteries in the Port of Montreal.
Authorities are investigating a report that violence erupted on a pickleball court in B.C.'s Lower Mainland over the weekend.
Police say a toddler in Cambridge, Ont., who was reported missing early Monday morning, has since died.
A mentally ill man who killed 10 people at a Colorado supermarket in 2021 was convicted Monday of murder and faces life in prison.
A Soyuz capsule carrying two Russians and one American from the International Space Station landed Monday in Kazakhstan, ending a record-breaking stay for the Russian pair.
Japan’s meteorological agency on Tuesday issued a tsunami advisory to a group of remote islands south of Tokyo after a strong earthquake.
Israel and Hezbollah traded strikes again Tuesday as the death toll from a massive Israeli bombardment climbed to nearly 560 people and thousands fled from southern Lebanon with the two sides on the brink of all-out war.
Japan said its warplanes used flares to warn a Russian reconnaissance aircraft to leave northern Japanese airspace on Monday.
Malaysian police said Monday they have rescued 187 more children and raided locations nationwide linked to an Islamic business group that is being investigated for alleged sexual assault of children.
The House of Commons is set to debate a Conservative non-confidence motion today, as the Tories try to take down Prime Minister Justin Trudeau's government.
Following another byelection loss in a riding long considered a Liberal stronghold, coupled with the news another minister is quitting cabinet — and opting to sit as an independent MP — the weekly panel of political strategists on CTV's Question Period weighs in on the Liberals' political fortunes.
Prime Minister Justin Trudeau said many Canadians are taking their cost-of-living frustrations 'out on me for understandable reasons,' during his U.S. late-night television debut on 'The Late Show' with Stephen Colbert Monday night.
Respiratory syncytial virus, or RSV, season is just a few months away, but new vaccine options have already arrived for Ontario residents who may be vulnerable to the winter bug.
Private nursing agencies could cost Canadian health-care facilities approximately $1.5 billion in 2023-24, according to a new report commissioned by the Canadian Federation of Nurses Unions.
There are 'no restrictions' on the right to receive health services in Quebec for English speakers, according to a new clarification document issued by the Quebec Health Ministry on Monday.
A new analysis of dozens of arrowheads is helping researchers piece together a clearer portrait of the warriors who clashed on Europe’s oldest known battlefield 3,250 years ago.
Finally, an emoji to represent us all is coming soon: An exhausted face with bags under its eyes.
A Soyuz capsule carrying two Russians and one American from the International Space Station landed Monday in Kazakhstan, ending a record-breaking stay for the Russian pair.
Beverly Glenn-Copeland says he's been diagnosed with dementia and will play his final concert tour dates over the next two weeks.
The sexual assault trial for Canadian musician Jacob Hoggard, the former frontman for the band Hedley, is expected to begin in northern Ontario this week, following a jury selection process.
The Juno Awards are casting a spotlight on Canadian-made South Asian music as part of broader changes to the annual celebration.
Cineplex Inc. has been ordered to pay a record $38.9 million fine after the Competition Tribunal found the theatre owner guilty of deceptive marketing practices.
B.C.’s Civil Resolution Tribunal has ordered WestJet to refund a family in full for their diverted flight and compensate them for associated costs.
Canadian natural gas prices slumped to their lowest level in more than two years on Monday and are expected to remain under pressure for weeks.
The City of Ottawa says it is recruiting a 'nightlife council' to aid the city's recently appointed nightlife commissioner.
One simple action involving your smartphone could help improve your mental health at work, according to a new study.
Alcohol-free beer has been gaining popularity in recent years as beer consumption shrinks.
Surfer Mickey Brennan says he's 'amazed' to be alive after wiping out in a giant wave off Tasmania.
The Toronto Raptors are planning to retire Vince Carter's jersey next month, sources tell TSN.
The Philadelphia Flyers had a former hockey coach help him Monday at training camp — the father of the late John and Matthew Gaudreau, who was an invited guest.
Struggling Jeep and Ram maker Stellantis is looking for a CEO to succeed Carlos Tavares, but the company says it's just part of a normal leadership succession plan.
The U.S. Commerce Department on Monday will propose a ban on the sale or import of smart vehicles that use specific Chinese or Russian technology because of national security concerns, according to U.S. officials.
Northvolt plans to cut 1,600 jobs at its base in Sweden, or about a fifth of its global workforce, as Europe's biggest hope in the electric vehicle battery market struggles with production problems, sluggish demand and competition from China.
Giant gourds took over a Manitoba community this weekend.
Fire has destroyed a barn and 17,000 plants at a family-owned business in Lower Coverdale, N.B.
Before influencers on social media, Canada’s Jeanne Beker was bringing the world of high fashion down to earth and as Calgary’s Glenbow Museum gets a major make-over, it will include a new exhibition showcasing the pop culture icon.
A sea lion swam free after a rescue team disentangled it near Vancouver Island earlier this week.
A Nova Scotian YouTuber has launched a mini-truck bookmobile.
Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.
Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.
An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.
They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.
A man accused of driving his truck into a march for B.C. residential school survivors two years ago has been found guilty of dangerous driving.
BC Conservative leader John Rustad dropped a major policy plan Sunday, pledging to eliminate supervised drug consumption sites across B.C. and replace them with intake centres for treatment and recovery.
B.C.’s Civil Resolution Tribunal has ordered WestJet to refund a family in full for their diverted flight and compensate them for associated costs.
A rainfall warning is in effect for Toronto and many other regions across southern Ontario with Environment Canada calling for up to 50 millimetres of rainfall over a period of less than 24 hours.
Respiratory syncytial virus, or RSV, season is just a few months away, but new vaccine options have already arrived for Ontario residents who may be vulnerable to the winter bug.
A pedestrian has died and another is injured following a two-vehicle collision in Toronto's west end, paramedics say.
After four months of water conservation measures, the City of Calgary has lifted all restrictions.
Calgary police have released a photo of a suspect wanted in connection with a fire in the community of Riverbend that damaged multiple homes.
The City of Calgary has opened applications to design its permanent residential school memorial and the winning plan will be chosen in mid-2025.
There has been an apparent spike in the number of reported violent crimes in Ottawa this month. Police Chief Eric Stubbs says it's a concern.
The Canada Revenue Agency has provided new data on the number of employees who were found to have received the Canada Emergency Response Benefit during the COVID-19 pandemic.
The City of Ottawa says it is recruiting a 'nightlife council' to aid the city's recently appointed nightlife commissioner.
A fire in a container at one of the Port of Montreal's terminals prompted the city to issue a containment notice for the area adjacent to the port on Monday evening, in the Mercier--Hochelaga-Maisonneuve borough.
There are 'no restrictions' on the right to receive health services in Quebec for English speakers, according to a new clarification document issued by the Quebec Health Ministry on Monday.
Union members at the Hilton Laval hotel have ratified the agreement in principle reached with the employer to renew their collective agreement, by a margin of 89 per cent.
Police have charged a former worker with Edmonton Public Schools with forgery and fraud over $5,000 for allegedly faking asbestos reports over two years. And Jason McCallum is still at large.
A man driving a motorcycle is dead after an afternoon collision on Edmonton's Groat Road on Monday.
Matt Coronato scored twice and Jonathan Huberdeau assisted on three goals as the Calgary Flames beat the host Edmonton Oilers 6-3 in one of two split-squad games between the provincial rivals on Monday night.
Construction on Almon Street in Halifax that started more than a month ago will continue longer than expected after city crews uncovered old tram lines beneath the road.
A series of high-value thefts have police warning Maritime business owners to be on the lookout.
Public health officials in Prince Edward Island are investigating an outbreak of gastrointestinal illness reported among 50 people who attended a shellfish festival over the weekend.
It was a tragic ending to the search for a six-year-old boy in northeastern Manitoba who had been missing since Wednesday.
A 20-year-old man has been charged in connection with the death of a 52-year-old woman in an Assiniboine Avenue apartment on Sunday.
There are 14 MRIs in Manitoba, and now there's a renewed push to get another one that would go inside the new hospital being built in Portage la Prairie.
The Saskatchewan Government is fighting to have a Court of King's Bench decision reversed. A decision which would allow a constitutional challenge of its Parents' Bill of Rights.
Farmer are thinking about more than their crops this harvest. They're talking about the upcoming Saskatchewan election and how provincial and federal policies may impact their economic future.
Emergency Crews including Regina Fire were called to a house fire in the community of Grand Coulee on Monday afternoon.
Three people were killed Monday morning in a crash north of Wellesley.
Police say a toddler in Cambridge, Ont., who was reported missing early Monday morning, has since died.
Residents at a Kitchener townhouse complex still haven’t been able to return to their homes, even though it's been 11 months since a fire at a neighbouring unit.
The Saskatchewan Government is fighting to have a Court of King's Bench decision reversed. A decision which would allow a constitutional challenge of its Parents' Bill of Rights.
Fire crews are battling a blaze at the Candle Lake Golf Course clubhouse on Monday morning.
The Saskatchewan Ministry of Education says a woman facing an assault charge is no longer working at a private Christian school where the alleged incident took place.
A family dispute related to a property matter turned ugly over the weekend when a 71-year-old hit their head on the pavement after being pushed.
Luis Armando Albino was six years old in 1951 when he was abducted while playing at an Oakland, Calif., park. Now, more than seven decades later, Albino has been found thanks to help from an online ancestry test, old photos and newspaper clippings.
Officials in the City of Timmins say the state of Municipal Road, which connects Timmins and Iroquois Falls, is well beyond the patch-up phase.
The calls are growing louder for city council to tighten the rules governing short-term accommodations, including those advertised on websites like Airbnb and Vrbo, after students arrived by the busload at a rented house in the Masonville neighbourhood.
Showers are expected to push into the region through the afternoon as a moisture laden system moves into the Great Lakes Basin.
519 Meets organized a car rally in south London on Saturday in a Value Village parking lot, and it turned out to be their largest ever.
Casino Rama announced three new performances will hit the stage this winter.
Tree lighting, horse-drawn rides and the Santa Claus parade all come packaged together in November.
Some changes could be coming to one of the busiest streets in Simcoe County.
Rain could be heavy at times across Windsor-Essex on Tuesday. Environment Canada has issues a special weather statement, with total local rainfall amounts near 30 to 45 mm.
Windsor police have arrested one suspect and is looking for another after shots were fired during an altercation downtown.
On Monday, most Windsor city councillors voted against a motion to cancel the development at 3930 and 3950 Sixth Concession Road, allowing the 24-unit townhouse project to proceed.
B.C.’s Civil Resolution Tribunal has ordered WestJet to refund a family in full for their diverted flight and compensate them for associated costs.
BC Conservative leader John Rustad dropped a major policy plan Sunday, pledging to eliminate supervised drug consumption sites across B.C. and replace them with intake centres for treatment and recovery.
Mounties are asking witnesses to come forward after a woman was struck by a vehicle and seriously injured in a crosswalk in Nanaimo, B.C.
A pair of runaway pigs are in the custody of an animal sanctuary in the Okanagan after evading police and volunteers for hours earlier this week.
The Red Bridge, a historic landmark in Kamloops, B.C., was completely destroyed by fire early Thursday morning.
Animal protection officers in British Columbia have rescued three pit bulls – including one that gave birth to 10 puppies – from a rat-infested home in Kelowna.
Farmers in southern Alberta are working to wrap up harvest, with 80 per cent of major crops in the bin, according to the province's latest crop report.
Monday marked the official start of Reconciliation Week in Lethbridge.
A Medicine Hat man faces charges after police say they found him in possession of drugs and a .22-calibre pen gun.
After playing the lottery for more than 40 years, a Greater Sudbury woman made a huge windfall playing a scratch ticket game.
A family dispute related to a property matter turned ugly over the weekend when a 71-year-old hit their head on the pavement after being pushed.
Police in Sault Ste. Marie charged a 36-year-old suspect with drug trafficking and other charges following a weekend raid of a residence on Robin Street.
Newfoundland and Labrador sponsored a minor football team in England, now they’re about to play one of the biggest clubs in European soccer.
Newfoundland and Labrador's chief medical officer is monitoring the rise of whooping cough infections across the province as cases of the highly contagious disease continue to grow across Canada.
A 16-year-old biennial event aimed at fostering business in the country's eastern Arctic and northern regions has been cancelled indefinitely as a dispute unfolds between Inuit in Canada and a Labrador group claiming to share their heritage.
The Shopping Trends team is independent of the journalists at Â鶹´«Ã½. We may earn a commission when you use our links to shop. Read about us.
