US CPI falls for first time since 2020, core indicator stays flat.
2026.07.14 20:49:31
U.S. consumer prices fell for the first time in six years in June, while a key gauge of underlying inflation was flat, easing pressure on the Federal Reserve to raise interest rates. According to data released Tuesday by the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) dropped 0.4% from May and rose 3.5% year-over-year. The core index, excluding food and energy, was unchanged from May and rose 2.6% year-over-year. The report noted that as the most severe period of energy price shocks from Iran-related tensions began to subside, falling gasoline prices in June provided some relief for consumers. Ahead of the Fed’s meeting at the end of this month, officials are likely to welcome the data; however, renewed U.S.-Iran hostilities have pushed oil prices higher again, which could prolong the inflationary impact of the conflict. U.S. stock index futures rose and Treasury yields fell as investors scaled back bets on a July Fed rate hike. The data showed core inflation was restrained, mainly due to falling prices of goods such as apparel and used cars, while auto insurance premiums also dropped sharply.
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