U.S. June inflation rate slows to the 3% range

U.S. consumer inflation for June slowed to the 3% range, coming in below market expectations. As a result, it is being assessed that the likelihood of the Federal Reserve (the Fed) making additional interest rate hikes has somewhat decreased. According to the U.S. Department of Labor, the Consumer Price Index for June rose 3.5% from the same month a year earlier and fell 0.4% from the previous month. Core CPI, which excludes energy and food, also rose only 2.6% year over year, coming in below market forecasts. Following the release of this data, U.S. Treasury yields fell, and the market is watching to see whether the Fed's pace of tightening could slow at the Federal Open Market Committee (FOMC) meeting scheduled for later this month. However, as tensions in the Middle East rise again, uncertainty remains over international oil prices and future inflation trends.