Inflation in America slows to 3% in June on an annual basis

America’s monthly inflation rate fell during June, providing additional cover for the Federal Reserve to start cutting interest rates later this year.

The Labor Department said Thursday that the Consumer Price Index, a broad measure of the costs of goods and services across the US economy, fell by 0.1 from May, putting the 12-month rate at 3%, its lowest level in more than 3 years.

The all-item index rate decreased from 3.3% in May and stabilized on a monthly basis. Excluding volatile food and energy costs, the so-called core CPI rose 0.1% monthly and 3.3% from a year ago, compared to expectations of respectively 0.2% and 3.4%, according to the report from the Bureau of Labor Statistics.