Forex
Inflation Relief Short-Lived as Middle East Tensions Drive Up Oil Prices
US inflation slowed in June to 3.7% annual growth, down from 4.1% in May, according to data released by the Commerce Department's Bureau of Economic Analysis on Thursday.
The Personal Consumption Expenditures Price Index, a key measure tracked by the Federal Reserve, was in line with economists' expectations.
However, the easing is expected to be temporary as renewed hostilities in the Middle East push oil prices higher. Brent oil prices are hovering just above $90 a barrel, while average US gasoline prices have risen back above $4 a gallon.
The moderation in PCE inflation was reflected by a retreat in oil prices amid a fragile US-Iran ceasefire, which has since fallen apart.