With annual CPI slowing to 3.5% from 4.2% in May and falling under the 3.8% market prediction, U.S. inflation cooled in June. Rising 0.5% in May, CPI dropped 0.4% month over month, indicating that price pressures eased more than anticipated.
Stripped out food and energy, core CPI was flat month over month and slowed to 2.6% year over year from 2.9% in May—also less than the anticipated 2.8%. Generally speaking, the evidence supports a less aggressive policy ahead and suggests widespread disinflation.
