Inflation may have peaked in May
Energy prices have fallen, driving the decline in inflation. Average national gasoline prices stood at $3.84, down from $4.50 at their peak.
The decrease in gas prices is leading traders to think that CPI in June will show prices falling by 0.2% compared with May. Weaker U.S. crude oil prices have fallen below $70 per barrel for the first time since the war began.
Traders now think there’s only a 28% chance that headline inflation this year peaks above 4.2%, which was the annual rate of increase in the Consumer Price Index in May.