U.S. consumer prices cooled more than expected in June, according to the Consumer Price Index (CPI) report released on Tuesday, with both headline and core CPI coming in softer than economists forecasted.
According to data from the Bureau of Labor Statistics (BLS), on a seasonally adjusted basis, CPI fell 0.4% in June, after rising 0.5% in May. This was the largest single-month decline since April 2020, the BLS noted.
This pushed the annual inflation rate to 3.5% before seasonal adjustment, amid easing energy prices.
Core CPI, which excludes food and energy, was flat in June, lower than a Dow Jones estimate of a 0.2% increase, according to MarketWatch data.
On an annual basis, core CPI stood at 2.6%, lower than Wall Street expectations. The headline and core inflation are still above the Federal Reserve’s long-term target of 2%.
| ParticularsActualForecast | CPI (MoM)-0.4%-0.2% | CPI (YoY)+3.5%+3.8% | Core CPI (MoM)+0%+0.2% | Core CPI (YoY)+2.6%+2.9% |
Source: Bureau of Labor Statistics, U.S. Department of Labor
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