US CPI Inflation Softens to 3.5% in June, Below Expectations
Annual US CPI inflation fell to 3.5% in June, below the market forecast of 3.8% and down from May's 3-year high of 4.2%, according to the Bureau of Labor Statistics.
The US Bureau of Labor Statistics reported Tuesday that the annual Consumer Price Index (CPI) rose 3.5% in June, a sharp deceleration from the 4.2% reading in May. The figure came in well below the consensus estimate of 3.8%.
This marks a significant cooling from the three-year high seen in the prior month. The softer inflation print could reduce the urgency for the Federal Reserve to continue aggressive rate hikes, potentially weighing on the US dollar in the near term.
Market participants will now monitor upcoming data for further confirmation of the disinflation trend.
Source: FXStreet Forex News