Svmuu News: U.S. consumer prices fell in June for the first time in six years, and a key measure of underlying inflation remained largely unchanged, which has somewhat eased 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) fell 0.4% from May and rose 3.5% from a year earlier. The core index, which excludes food and energy, remained unchanged from May and rose 2.6% from a year earlier.
The report showed that falling gasoline prices in June provided some relief to consumers as the worst of the energy price shock triggered by the Iran conflict began to subside. Federal Reserve officials are likely to welcome this data ahead of the Fed’s meeting later this month; however, the resurgence of hostilities between the U.S. and Iran has caused oil prices to rise again, which could prolong the inflationary effects of the conflict. As investors scaled back their bets on a Fed rate hike in July, U.S. stock index futures rose and Treasury yields fell. The data showed that core inflation was held in check, primarily due to falling prices for goods such as clothing and used cars. Auto insurance premiums also fell significantly. (Jin Shi)