U.S. consumer price inflation likely to have slowed in June

U.S. consumer price inflation is likely to have slowed in June. According to a TD Economics research report, the headline CPI inflation is likely to have slipped to 1.7 percent year-on-year in June, with prices are expected to have stayed flat on the month.

Energy prices are expected to have driven the slowdown, with declines throughout the board in fuels, electricity and natural gas. Offsetting are future gains in food prices, which are likely to rebound further on a year-on-year basis.

Core inflation is expected to have gained modestly by 0.1 percent, keeping the core inflation rate stable at 1.8 percent year-on-year, added TD Economics.

“While the drag from wireless services prices is likely to dissipate, negative contributions from vehicle prices should continue into June”, stated TD Economics.

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