The latest Consumer Price Index (CPI) report reveals a significant cooling in US inflation for June 2023. For the first time since May 2020, the monthly headline CPI showed a negative value, decreasing by 0.1%. The annual inflation rate slowed to 3%, the lowest since March 2021, beating economists’ expectations. Core inflation, which excludes volatile food and energy prices, also showed moderation, rising just 0.1% monthly and 3.3% annually. This data suggests a continued trend of easing inflationary pressures in the US economy, leading to positive market reactions, including a notable drop in Treasury yields.