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US consumer prices rose 3.5% annually in June, less than expected as energy prices eased
Energy and gasoline costs drove the slowdown, while core prices were unchanged and rose 2.6% from a year earlier, the Labor Department said.
- U.S. consumer inflation cooled to an annual rate of 3.5% in June, a sharp drop from the 4.2% pace recorded in May. The decline represents the cooling of a major headwind for the economy and came in lower than the 3.8% to 3.9% year-on-year rate most economists had projected.
- Plunging fuel costs drove the headline slowdown, as the overall energy index tumbled 5.7% over the month. This drop was fueled by a massive 9.7% decline in gasoline prices in June, which was largely attributed to the temporary ceasefire-era reopening of the Strait of Hormuz.
- Core inflation also showed progress, with the index stripping out volatile food and energy costs cooling to an annual rate of 2.6% in June down from 2.9% the previous month. On a monthly basis, overall consumer prices actually fell by 0.4%, marking the sharpest single-month price decline since the height of the pandemic in April 2020.
- Shelter and food costs remained stubborn drivers of inflation, with grocery prices rising 0.2% over the month. Eggs spiked 4.3% in June, dairy rose 1.2%, and housing costs held steady with a high 3.3% annual increase.
- The relief may be short-lived due to renewed geopolitical tensions, as the data reflects a June window of calm that has already shattered. With the ceasefire now over and President Trump reinstating a blockade in the Strait of Hormuz, oil prices have rapidly surged back above $84 a barrel, signaling a likely rebound in inflation for July.
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Consumer inflation moderates but Middle East conflict threatens rate outlook | Honolulu Star-Advertiser
WASHINGTON >> Consumer inflation slowed more than expected in June as energy prices retreated, but the moderation was insufficient to convince financial markets to take an interest rate increase from the Federal Reserve this year off the table against the backdrop of renewed conflict in the Middle East.
·Honolulu, United States
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BLS DATA - Inflation Moderates as Energy Prices Dropped in June
The Bureau of Laor and Statistics (BLS) releases June inflation data [BLS RELEASE HERE]. Overall, the June rate of inflation decreased 0.4%, significantly faster than anticipated as energy prices and gasoline prices dropped. Consumer demand on non-essential goods and services also contributed to a lowering of overall inflation as consumers continued holding back spending on […]
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Total News Sources146
Leaning Left26Leaning Right40Center43Last UpdatedBias Distribution39% Center
Bias Distribution
- 39% of the sources are Center
39% Center
L 24%
C 39%
R 37%
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