Inflation Eases in June, But Experts Warn of Upcoming Price Surge

The US inflation rate slowed in June to 3.7% from May's high of 4.1%, but experts predict this easing will be temporary due to rising oil prices caused by renewed hostilities in the Middle East.

The Personal Consumption Expenditures Price Index (PCE) was unchanged from May, meeting economists' expectations, and fell 0.1% month-over-month.

Excluding volatile food and energy components, PCE inflation rose 3.3% year-over-year in June, a slowdown from May's 3.4% increase.

The Federal Reserve tracks the PCE inflation measures for its 2% target, and Fed Chairman Kevin Warsh emphasized that there is no soft inflation target on this committee's watch.