US June inflation slowed to 3.5% as gasoline prices fell
What's next: Rising oil prices after renewed Middle East fighting could reverse the relief and keep Fed rate cuts on hold.
US consumer inflation cooled to 3.5% in June from 4.2% in May, helped by a 9.7% drop in gasoline prices, according to Bureau of Labor Statistics data. The report marked the lowest annual inflation reading since March and came in cooler than expected. Core inflation, which excludes food and energy, was 2.6%, roughly steady. The easing may prove temporary. Brent crude climbed to about $87 a barrel after renewed US-Iran conflict in the Middle East, raising the risk of higher fuel costs in coming months. Food prices also kept climbing, including meat, eggs, dairy and cereals, while restaurant meals remained 3.7% more expensive than a year earlier.