In June, inflation reached its lowest annual rate in over two years due to a cost slowdown and comparisons to a 40-year high.

The consumer price index rose 3% year-over-year, the lowest since March 2021.

Core CPI climbed 4.8% year-over-year and 0.2% monthly without food and energy costs, with estimates 5% and 0.3% higher.

The data may help the Federal Reserve lower inflation, which was 9% in 2022, the highest since November 1981.

Central bankers focus on core inflation, which is still over the Fed’s 2% annual objective.