U.S. Consumer Inflation Slows More Than Expected in June, Easing Market Anxiety

The U.S. Consumer Price Index (CPI) for June increased by 3.5% year-on-year, which was lower than the 4.2% recorded in May and below economists' forecasts of 3.8%. On a monthly basis, the CPI fell 0.4%, marking the first decline since April 2020. Excluding volatile food and energy components, core CPI increased 2.6% year-on-year and remained unchanged monthly. This moderation in inflation, largely attributed to a retreat in gasoline prices, has eased market concerns about potential further Federal Reserve rate hikes, leading to an uptick in U.S. stocks and a decrease in Treasury yields.