US Inflation Eases in June as Energy Prices Fall, but Experts Warn of Possible Rebound

Consumer prices in the United States declined in June as falling energy costs, especially petrol prices, helped ease inflation pressures after global energy concerns linked to the Strait of Hormuz temporarily reduced.

According to the US Bureau of Labor Statistics, the Consumer Price Index (CPI) dropped 0.4 percent month-on-month, marking a significant decline driven mainly by cheaper energy.

Energy prices fell 5.7 percent during the month, with oil prices dropping 9.7 percent and petrol prices declining 9.5 percent.

The average price of petrol stood at about $3.85 per gallon, down from $4.07 a month earlier, according to the American Automobile Association.

The White House said the drop in energy prices reflected President Donald Trump’s claim that oil costs would decline as tensions around the Strait of Hormuz eased.

However, analysts warned that the relief may be temporary after renewed US-Iran tensions and attacks on commercial vessels pushed oil prices higher again.

Some experts said rising crude prices could soon send petrol prices back toward $4 per gallon.

Other areas also recorded price declines, including clothing, used vehicles and electricity.

Meanwhile, food prices increased slightly, with meat prices rising while some fruit and vegetable costs fell.

Despite the monthly decline, annual inflation remained elevated. Consumer prices were 3.5 percent higher compared with a year earlier, while energy costs increased 15.7 percent and petrol prices surged 27 percent.

The inflation report comes as pressure mounts on the US Federal Reserve to manage rising prices.

Markets reacted positively to the data, with major US stock indexes recording gains after the report was released.

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