TechFlow reports, on July 14, U.S. consumer prices fell for the first time in six years in June, and a key measure of underlying inflation remained basically flat, which alleviated pressure on the Federal Reserve to raise interest rates to some extent.
According to data released by the U.S. Bureau of Labor Statistics on Tuesday, the Consumer Price Index (CPI) fell 0.4% compared to May and rose 3.5% compared to the same period last year. The core index excluding food and energy remained flat compared to May and rose 2.6% compared to the same period last year.
The report showed that as the worst period of energy price shocks caused by the Iran war began to fade, the decline in gasoline prices in June brought some relief to consumers. Before the Federal Reserve meets at the end of this month, Federal Reserve officials may welcome this data; however, the reignition of U.S.-Iran hostilities led to oil prices rising again, which may prolong the inflationary impact caused by the conflict.
As investors reduced bets on a Federal Reserve interest rate hike in July, U.S. stock index futures rose and Treasury yields fell. Data showed that core inflation indicators were suppressed, mainly due to the decline in prices of goods such as clothing and used cars. Motor vehicle insurance premiums also fell significantly. (Jin10)
