June 2023 brought a noticeable change in inflationary pressures, as the economy began to cool down. The inflation rate dropped to 3% during this period, marking a significant decrease from the previous months.
The disruptions that occurred in supply chains during the previous months have started to stabilize. As global trade hangs tight and logistical challenges are addressed, the smoother flow of goods and services contributes to a moderation in prices and inflation as a whole.
However, it is crucial to monitor inflation trends in the coming months to ascertain whether this moderation is a temporary phenomenon or part of a sustained trend. Factors such as government policies, global economic conditions, and geopolitical developments can still influence the trajectory of inflation.
by Ryan Griffin