US Inflation Eases for First Time Since 2020 Amid Lower Oil Prices

The Federal Reserve's preferred inflation gauge, the personal consumption expenditures (PCE) price index, fell by 0.1% in June, marking its first monthly decline since 2020.

This decrease was largely driven by lower oil prices following a temporary truce between the US and Iran.

The annual rate of inflation slowed to 3.7%, down from 4.1%, but still remains well above the Fed's 2% target.

The core PCE measure, which strips out energy, rose just 0.1% on the month, while its annual rate eased to 3.3% from 3.4%, indicating some cooling of underlying pressures.