US inflation fell more than expected to 3.5% in June as oil prices tumbled
Financial Times 2026-07-14 12:40:16
Context: The United States experienced a decline in inflation in June, with the rate falling more than expected to 3.5%, driven in part by a significant drop in oil prices. This easing of energy costs helped to temper price surges that had been exacerbated by the conflict in the Middle East. As a result, traders have reduced their bets on interest rate hikes by the Federal Reserve.
Key Facts
- The US inflation rate fell to 3.5% in June, surpassing expectations and marking a notable decrease from previous months.
- The decline in inflation was partly attributed to a substantial decrease in oil prices, which helped to mitigate the upward pressure on prices caused by the ongoing conflict in the Middle East.
- In response to the easing inflationary pressures, traders have scaled back their expectations for future interest rate hikes by the Federal Reserve.