US June CPI Cools to 3.5% as Gasoline Prices Drop 9.7%
Updated
Updated · The New York Times · Jul 14
US June CPI Cools to 3.5% as Gasoline Prices Drop 9.7%
3 articles · Updated · The New York Times · Jul 14
Summary
Consumer prices rose 3.5% in June from a year earlier, down from 4.2% in May, while the CPI fell 0.4% on the month—the biggest outright decline since 2020.
A 9.7% drop in gasoline prices drove much of the cooldown, but underlying inflation also softened: core CPI eased to 2.6% from 2.9% and was flat on the month.
Shelter and grocery costs added to the relief, with food at home up 0.2% in June and rent-related measures near historical norms, suggesting the spring oil shock had limited spillover.
Markets quickly pared back expectations of a July Fed rate hike, lifting stocks, even as Chair Kevin Warsh told lawmakers the central bank has 'no tolerance' for persistently high inflation.
That reprieve may prove fragile because renewed fighting with Iran has already pushed oil back up, leaving policymakers watching for several more months of soft data before ruling out later rate increases.