"US Inflation Hits Two-Year Low, Easing Economic Concerns"

US annual inflation rose at its slowest pace in over two years in June, with underlying price pressures receding, potentially pushing the Federal Reserve closer to ending its interest rate hiking cycle. Labor costs also posted their smallest increase in two years in Q2 as wage growth cooled. The data suggests a "soft landing" for the economy, easing concerns of a recession. Consumer spending increased in June, driven by purchases of motor vehicles and financial services, but with households depleting pandemic savings and credit conditions tightening, future spending may not be robust.