Inflation rate for June 0.1% less than previous month, annual rate now 3%, Labor Department

The inflation rate for June dropped 0.1%, from the previous month, according the Bureau of Labor Statistics' Consumer Price Index announced Thursday.

The annual index rate is now 3%, the agency also announced. 

The slightly lower rates could be a sign for the Federal Reserve to cut interest rates later this year.

The index is a broad measure of costs for goods and services across the U.S. economy,.

The annualized rate is roughly around its lowest level in more than three years.

The monthly and annual rates were essentially in line with projections.