US inflation cools again, may usher interest rate cuts by Federal Reserve

Inflation in the United States cooled in June for a third straight month, a sign that the worst price spike in four decades is steadily fading and may soon usher in interest rate cuts by the Federal Reserve.

In a better-than-expected report from the government, consumer prices declined 0.1 per cent from May to June after having remained flat the previous month, the government reported Thursday. And measured from 12 months earlier, prices were up 3 per cent in June, down from 3.3 per cent in May.

The latest inflation readings could help convince the Fed's policymakers that inflation is returning to its 2 per cent target.

A brief pickup in inflation early this year had caused Fed officials to scale back their expectations for interest rate cuts. They responded by saying they would need to see several months of mild price increases to feel confident enough enough to cut their key rate from its 23-year high.

The June inflation data will qualify as as another installment of the more goo