U.S. consumer prices fell more than expected in June, recording the largest monthly drop since April 2020 as a sharp fall in energy eased recent inflationary pressure. Headline CPI declined 0.4% m/m (seasonally adjusted), taking the y/y rate to 3.5%; economists had penciled in -0.2% m/m and 3.8% y/y. Core CPI (ex food and energy) was unchanged m/m, with the 12-month rate at 2.6% versus market expectations of +0.2% m/m and 2.9% y/y. The energy index plunged 5.7% m/m (still +15.7% y/y); gasoline a

U.S. consumer prices fell more than expected in June, recording the largest monthly drop since April 2020 as a sharp fall in energy eased recent inflationary pressure. Headline CPI declined 0.4% m/m (seasonally adjusted), taking the y/y rate to 3.5%; economists had penciled in -0.2% m/m and 3.8% y/y. Core CPI (ex food and energy) was unchanged m/m, with the 12-month rate at 2.6% versus market expectations of +0.2% m/m and 2.9% y/y. The energy index plunged 5.7% m/m (still +15.7% y/y); gasoline and fuel oil each fell more than 9%. Services inflation excluding energy eased noticeably—a key Fed-watch category—with housing up just 0.1% and transportation services down 0.3%. Food rose 0.2% m/m; new vehicle prices were flat; used cars and trucks fell 0.2%; apparel declined 0.6%.