Inflation in the United States experienced its most significant monthly decrease since April 2020, driven by a decline in energy prices. The Consumer Price Index (CPI) recorded a 3.5% annual increase in June, a notable slowdown from May's 4.2% rate, according to data released Tuesday by the Bureau of Labor Statistics. On a month-over-month basis, inflation fell by 0.4%, exceeding the 0.2% decrease that economists had predicted.
The cooling of inflation is attributed in part to the reopening of the Strait of Hormuz, which has led to reduced oil and gasoline prices. Despite this deceleration, the overall figures may not be sufficient to prompt immediate interest-rate cuts by the Federal Reserve.
Core CPI, a metric that excludes volatile food and energy costs and is closely watched by the Federal Reserve, also saw a slight decrease, falling to 2.6%. However, this figure remains above the central bank's target of 2%.