June headline CPI fell to 3.5% year-over-year, below forecasts, marking the softest monthly core reading since January 2021.
US consumer prices rose 3.5% year-over-year in June, down from 4.2% in May and below the 3.8% consensus forecast. Monthly headline CPI fell 0.4%, while core inflation was unchanged, its weakest print since January 2021.
The data follows a spring rebound in inflation and contrasts with May’s higher-than-expected readings. Core CPI eased to 2.6% year-over-year from 2.9%, also undershooting expectations.
The USD weakened sharply after the release, as traders priced in a higher probability of Fed rate cuts later this year. Crude oil prices briefly dipped following the data.