US consumer inflation eases in June, according to reports citing the latest U.S. CPI data. Both outlets say inflation slows more than expected, helped by lower energy costs, particularly a retreat in gasoline prices. Despite the cooling, inflation remains relatively elevated. One report puts June consumer inflation at 3.5% on a year-over-year basis, while noting that the decline does not eliminate expectations for further Fed action. Markets, the sources say, continue to weigh the possibility that the Federal Reserve could raise interest rates sometime this year, even after the softer inflation reading. The data are viewed as a signal that price pressures are moderating, but not sufficiently to remove concern about persistent inflation. Overall, the releases indicate that energy-driven changes contribute meaningfully to the June result, while the underlying inflation level is still high enough to keep rate-hike scenarios in play.
US June consumer inflation slows, but Federal Reserve rate-hike concerns persist
US consumer inflation eases in June, according to reports citing the latest U.S. CPI data. Both outlets say inflation slows more than expected, helped by lower energy costs, particularly a retreat in...
- US June consumer inflation slows more than expected, with energy prices retreating.
- Gasoline prices are cited as a key driver of the lower inflation reading.
- Year-over-year consumer inflation is reported at about 3.5%.
- The softer CPI data does not eliminate the chance of a Federal Reserve rate increase this year.
- Markets continue to consider rate-hike expectations despite the June cooling.
US consumer inflation eased more than expected in June as energy prices retreated, though markets still see a possibility of a Federal Reserve rate increase this year
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