BLS: U.S. CPI Slides on Plummeting Energy Prices in June


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- The U.S. Consumer Price Index (CPI) dipped 0.4% 
month-on-month in June, bringing the annual rate of inflation for the all-items 
index to 3.5%, according to data released Wednesday (7/14) morning by the U.S. 
Bureau of Labor Statistics (BLS).

   The decrease -- the largest monthly decline since April 2020 -- was 
spearheaded by a 5.7% contraction in the energy index which more than offset 
rising food and housing costs.

   The gasoline index decreased 9.7% on the month, but was still up 26.7% on 
the year, leading to a 15.7% year-on-year increase in the energy index.

   The all-items less food and energy index, the so-called core inflation, was 
unchanged from May, rising 2.6% year-on-year in June.

   The slowdown in consumer price inflation was larger than expected, but still 
not enough to rule out the Federal Reserve hiking interest rates in the second 
half of the year, particularly considering rebounding oil prices amid the 
recent escalation between the U.S. and Iran. Following the data release, the 
U.S. dollar index slipped 0.335 points to 100.53 against a basket of foreign 
currencies, down 0.48 points on the day.




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