US government data show the country's inflation rate slowed in June from a year earlier for the third straight month. This is boosting expectations that the Federal Reserve will cut interest rates as early as in September.

The Labor Department said on Thursday the consumer price index rose 3.0 percent in June from a year earlier, but fell 0.1 percent from the previous month.

The year-on-year increase was 0.3 percentage points lower than in May. It was also roughly 0.1 point below the market forecast.

Costs for transportation services rose 9.4 percent from a year earlier, while those for shelter increased 5.2 percent. But prices of used vehicles and gasoline declined 10.1 percent and 2.5 percent, respectively.

In testimony to Congress on Tuesday and Wednesday, Fed Chair Jerome Powell acknowledged that the case for rate cuts will improve if recent price trends continue.