KEY HIGHLIGHTS
- US June 2026 headline CPI fell 0.4% mom to 3.5% (May: 4.2%; Cons: 3.8%), the steepest one-month decline since April 2020. Core CPI, which excludes food and energy, was flat on the month, pulling annual core inflation down to 2.6% from 2.9% (Cons: 2.9%).
- Energy did nearly all the work, dropping 5.7% mom, its largest monthly fall since April 2020. However, the cooling was not purely an energy mirage: shelter rose just 0.1% month-on-month, the smallest gain since January 2021.
- Markets read the print as room for the Fed to stay on hold, but the Iran-US ceasefire that drove June’s oil collapse has since broken down.
Regards, Aldiracita Research