US Inflation Rate Cools Down in June Amid Ongoing Supply Shocks

The US inflation rate has shown signs of cooling down in June, according to the latest data from the Federal Reserve. The Consumer Price Index (CPI) fell to 3.5% year-over-year, down sharply from 4.2% in May.

While this drop is seen as encouraging by Fed officials, including President Austan Goolsbee, who called it 'surprisingly benign', they are cautious not to declare victory just yet.

Goolsbee emphasized that more months of similar data are needed before declaring the inflation fight won. He also pointed out that supply shocks from tariffs and Middle East tensions continue to keep prices elevated.