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US Inflation Inches Higher in June as CPI Hits 322.561, Market Eyes Fed’s Next Move


Updated: July 15, 2025 18:28

Image Source : Adda247
The Consumer Price Index (CPI) for All Urban Consumers rose to 322.561 in June 2025, reflecting a 0.3% monthly increase on an unadjusted basis. This marks the highest monthly gain since January and signals a modest uptick in inflationary pressure, in line with market expectations.
 
Key Highlights:
 
- The annual CPI rate climbed to 2.7%, up from 2.4% in May, marking the highest year-on-year increase since February.

- Core CPI, which excludes food and energy, rose 0.3% month-on-month and 3% year-on-year, suggesting persistent underlying inflation.

- Shelter costs continued their steady rise, up 0.3% for the month and 3.9% over the past year.

- Food prices increased 0.3% in June, with dining out costs up 3.8% year-on-year and grocery prices rising 2.2%.

- Energy prices remained volatile: gasoline dropped 2.6% in June and 12% year-on-year, while electricity rose 0.9% for the month and 4.5% annually.
 
Market Reaction:

- The CPI data supports expectations for a cautious Federal Reserve stance, with analysts predicting rate cuts starting in September if inflation remains contained.

- Equity markets responded positively, with major indices rising on hopes of easing monetary policy.

- Goldman Sachs forecasts core CPI to remain in the 0.3–0.4% monthly range through year-end, barring tariff shocks.
 
Outlook:

- While inflation remains below peak pandemic levels, the June data suggests the Fed’s 2% target is still a work in progress.

- Investors will closely watch July’s CPI release and upcoming Fed commentary for clues on rate trajectory.
 
Sources: Bureau of Labor Statistics, Coinlive, US Inflation Calculator, Futunn News, Economic Times Markets

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