June Consumer Prices Fall For First Time in More Than Six Years
US consumer prices decreased last month for the first time in more than six years amid lower energy costs, though analysts were cautious with crude prices creeping back up amid renewed tensions between the US and Iran. The consumer price index declined 0.4% in June, its first monthly drop since May 2020 and the largest decline since April 2020, the Bureau of Labor Statistics said Tuesday. The consensus in a Bloomberg-compiled survey was for the index to move down by 0.1%. Annually, inflation cooled to 3.5% last month from May's 4.2%, compared with expectations for a 3.8% print. Energy prices fell 5.7% in June on a monthly basis as gasoline declined nearly 10%, while food price growth held steady at 0.2%. "Energy prices were by far the biggest driver of the general price decline in June," BMO Chief US Economist Scott Anderson said in a note. "This raises the specter that large and volatile changes in energy prices could still stoke downstream inflation pressures if the war in Iran continues." Oil prices have rallied in July as tensions between the US and Iran escalated over control of the Strait of Hormuz, potentially putting their preliminary peace deal at risk. Core.
US consumer prices decreased last month for the first time in more than six years amid lower energy costs, though analysts were cautious with crude prices creeping back up amid renewed tensions between the US and Iran.
The consumer price index declined 0.4% in June, its first monthly drop since May 2020 and the largest decline since April 2020, the Bureau of Labor Statistics said Tuesday.
The consensus in a Bloomberg-compiled survey was for the index to move down by 0.1%.
Annually, inflation cooled to 3.5% last month from May's 4.2%, compared with expectations for a 3.8% print.
Energy prices fell 5.7% in June on a monthly basis as gasoline declined nearly 10%, while food price growth held steady at 0.2%. "Energy prices were by far the biggest driver of the general price decline in June," BMO Chief US Economist Scott Anderson said in a note. "This raises the specter that large and volatile changes in energy prices could still stoke downstream inflation pressures if the war in Iran continues." Oil prices have rallied in July as tensions between the US and Iran escalated over control of the Strait of Hormuz, potentially putting their preliminary peace deal at risk.
Core.