June CPI fell 0.4%, below forecasts, reducing pressure on the Federal Reserve to raise rates at its July meeting.
US consumer prices declined 0.4% in June, marking the first monthly drop since 2020 and undershooting economist forecasts of a 0.1% decline. The softer-than-expected print follows May’s 0.5% increase and suggests inflationary pressures may be easing faster than anticipated.
Year-over-year CPI rose 3.5%, down from 4.2% in May and below the 3.8% consensus. Core CPI, excluding food and energy, was flat month-over-month, missing expectations of a 0.2% gain. Annual core CPI increased 2.6%, matching May’s pace but below the 2.9% forecast.
Markets reacted swiftly, with Bitcoin extending gains to $63,400, up roughly 2% on the day. Fed rate hike probabilities for July had surged to 42% ahead of the report but are likely to recede following the data.