Inflation in the United States showed a broad-based cooling in June, with the Consumer Price Index (CPI) rising 3.5% year-over-year. This figure came in significantly below the market expectation of 3.8% and was lower than the prior reading of 4.2%.
The core CPI, which excludes volatile food and energy prices, increased by 2.6% compared to a year ago. This also undershot forecasts, which anticipated a 2.8% rise, and was down from the previous month's 2.9%.
On a monthly basis, the headline CPI fell by 0.4% in June, a sharper decline than the -0.1% consensus estimate and a reversal from the 0.5% increase seen in May. The core CPI was unchanged month-over-month, registering 0.0% growth against expectations of a 0.2% rise and following a 0.2% increase previously.
Following the release of this softer-than-expected inflation data, financial market traders have scaled back their bets on an interest rate hike from the Federal Reserve at its upcoming policy meeting later this month.
This report is being updated with further details.
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