Inflation cools more than expected in June as gas costs fall, underlying prices ease
Summary
Inflation in the U.S. dropped more than expected in June, helped by lower gas, clothing, and used car prices. Core inflation, which excludes food and energy costs, also slowed, suggesting underlying price increases are cooling. However, rising oil prices due to tensions with Iran could slow this progress.Key Facts
- Consumer prices fell 0.4% from May to June, the biggest monthly drop in four years.
- Yearly inflation rate dropped to 3.5% in June from 4.2% in May.
- Core inflation, excluding food and energy, stayed flat in June and rose 2.6% year-over-year, above the Federal Reserve’s 2% target.
- The gas price increase from the Iran war raised some costs but did not cause broad inflation.
- President Donald Trump blamed former President Joe Biden for last month’s inflation spike, saying inflation is now going down.
- Inflation rose since President Trump took office last year, increasing from 3% to 3.5%.
- Rising oil prices from renewed U.S. attacks on Iran and a new blockade in the Strait of Hormuz could reverse recent inflation gains.
- The cooler inflation report reduces pressure on the Federal Reserve to raise interest rates in the near future.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
