US inflation cools to 3.5% in June as CPI decelerates
The US consumer price index rose 3.5% in June from a year earlier, a deceleration after several months of upward moves. The reading could reshape expectations for the Federal Reserve's next policy steps.
The Labor Department reported that the consumer price index rose 3.5% in June from a year earlier. The reading marks a deceleration after several months of upward pressure and offers a partial signal of relief in the inflation fight.
The pullback was driven in large part by falling energy prices, with softer gasoline and natural gas costs pulling the headline number down. Food and housing categories rose at a more moderate pace than in prior months.
The data could reshape expectations for the Federal Reserve's policy path. Market participants are watching closely whether the cooling trend gives the Fed more room to consider rate cuts in the months ahead.
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