WS News
14 Jul 2026, 15:56
U.S. Inflation Cools More Than Expected in June, Strengthening Rate Cut Expectations
U.S. inflation slowed more than expected in June, reinforcing expectations that the Federal Reserve could have greater room to ease monetary policy in the coming months.
Headline consumer prices fell 0.4% month over month, a sharper decline than the expected 0.1% decrease, following a 0.5% increase in May. On an annual basis, CPI slowed to 3.5%, below the 3.8% consensus forecast and down from 4.2% in the previous month.
Underlying inflation also continued to moderate. Core CPI, which excludes volatile food and energy prices, was unchanged on a monthly basis, compared with expectations for a 0.2% increase. Annual core inflation eased to 2.6% from 2.9%, coming in below the 2.8% market forecast.
The broad-based slowdown in both headline and core inflation suggests price pressures are continuing to ease across the U.S. economy. The softer data could strengthen market expectations that the Federal Reserve may begin cutting interest rates sooner if inflation continues to move toward its 2% target.
Following the release, investors are likely to closely monitor upcoming retail sales, and Federal Reserve commentary for further clues on the timing and pace of potential policy easing.
U.S. inflation slowed more than expected in June, reinforcing expectations that the Federal Reserve could have greater room to ease monetary policy in the coming months.
Headline consumer prices fell 0.4% month over month, a sharper decline than the expected 0.1% decrease, following a 0.5% increase in May. On an annual basis, CPI slowed to 3.5%, below the 3.8% consensus forecast and down from 4.2% in the previous month.
Underlying inflation also continued to moderate. Core CPI, which excludes volatile food and energy prices, was unchanged on a monthly basis, compared with expectations for a 0.2% increase. Annual core inflation eased to 2.6% from 2.9%, coming in below the 2.8% market forecast.
The broad-based slowdown in both headline and core inflation suggests price pressures are continuing to ease across the U.S. economy. The softer data could strengthen market expectations that the Federal Reserve may begin cutting interest rates sooner if inflation continues to move toward its 2% target.
Following the release, investors are likely to closely monitor upcoming retail sales, and Federal Reserve commentary for further clues on the timing and pace of potential policy easing.