The US consumer price index (CPI) rose 3.5% year-on-year in June, slowing down more than expected. This was attributed to the decline in international oil prices, which fell by 0.4% month-on-month, marking the largest drop since the pandemic. While energy prices continued to rise year-on-year, used car and truck prices as well as clothing prices fell month-on-month, leading to a slowdown in core CPI to a 2.6% year-on-year increase. However, concerns about inflation remain due to the possibility of escalating tensions between the US and Iran and expectations for the Federal Reserve's hawkish monetary policy stance. The market anticipates that the Fed may raise interest rates in September.
