finance
US Inflation Falls to 3.5 Percent in June as Energy Prices Drop
Consumer prices rose 3.5 percent in the year to June, down from 4.2 percent in May, the Bureau of Labor Statistics reported. Energy costs declined sharply while food prices increased. Federal Reserve Chair Kevin Warsh said the central bank remains committed to lowering inflation.
Jul 14, 1:34 PM·1m read1 source
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US inflation eased to 3.5 percent in the year to June, down from 4.2 percent in May, according to Bureau of Labor Statistics data reported by BBC News. The decline exceeded expectations and was driven by a 9.7 percent drop in gasoline prices and a 5.7 percent fall in overall energy prices. Core inflation, which excludes food and energy, stayed unchanged at 2.6 percent.
Prices for meat, poultry, fish, eggs, dairy and cereals rose during the month, and the cost of meals away from home increased 3. Brent crude oil prices surged $10 in 24 hours to $87 a barrel after US military strikes on Iran. The national average gasoline price reached $3.86 per gallon on Tuesday, up from $3.79 the prior week, AAA data showed.
The Fed held interest rates between 3.5 percent and 3.75 percent at its June meeting. More than one-fifth of US small business owners named inflation their single most important problem in the latest survey, the highest share in nearly two years, according to the National Federation of Independent Business.
