Inflation slowed in June to an annual rate of 3%, the Bureau of Labor Statistics reported Wednesday, the 12th consecutive month of slowdown after prices hit historic highs last summer.  

On a monthly basis, prices increased by 0.2%, lower than the 0.4% increase in May, according to the latest Consumer Price Index. The annual inflation rate in May was 4%.

“Core” inflation, which strips out volatile food and energy prices, fell to 4.8% in the year ending in June, BLS reported.

The cooling of inflation comes after the 10 consecutive interest-rate hikes by the Federal Reserve since March 2022, which has hit the housing market hard and raised costs of consumer loans on items such as cars.

Inflation hit a four-decade high of 9.1% in June 2022 and gas prices soared, raising worries of a looming recession. Gas prices have fallen to a national average of $3.54 per gallon, compared with $4.66 a year ago, according to AAA.

The inflation rate is still above the Fed’s target rate of 2%, and the central bank has not yet signaled whether it will raise rates further at its next meeting on July 26. Many investors and analysts expect another slight increase in rates, with the labor market remaining tight.

• Dave Boyer can be reached at dboyer@washingtontimes.com.