The CPI, which measures the cost of a basket of goods and services, rose 3% year-over-year in June, down from 4% in May. Economists had expected a rise of 3.1%.

Excluding food and energy prices, the core CPI rose 4.8% year-over-year in June, down from 5.3% in May.

The slowdown in inflation is likely due to a number of factors, including the Federal Reserve's interest rate hikes, which have made it more expensive for businesses to borrow money.

The Fed is expected to continue raising interest rates in an effort to bring inflation under control. (ILKHA)