June CPI fell 0.4% month-over-month, pushing annual inflation to 3.5% and core to 2.6%, below expectations.
The US Dollar Index dropped 0.4% to 100.90 on Tuesday after June’s Consumer Price Index declined 0.4% month-over-month, bringing annual inflation to 3.5%. Core CPI remained flat monthly and eased to 2.6% annually, both softer than anticipated.
Markets had expected a smaller monthly decline and steady annual readings. The data follows a trend of moderating price pressures, though Fed officials caution against overinterpreting a single report. Chicago Fed President Austan Goolsbee called the report “surprisingly benign” but stressed the need for consistent progress.
EUR/USD rose 0.4% to 1.1420, while GBP/USD gained 0.3% to 1.3390. USD/JPY slipped 0.2% to 162.20, though it remains near multi-decade highs, keeping intervention risks alive.