U.S. Consumer Prices Fall Much More Than Expected In June

U.S. consumer prices fell by more than expected in June, driven largely by a sharp pullback in energy prices, according to the Labor Department. The upside to the inflation print (cooling faster than consensus) increases the odds of a more dovish rate path. Market moves are likely as the data reshapes near-term expectations for interest rates.

Analysis

U.S. consumer prices fell by more than expected in June, driven largely by a sharp pullback in energy prices, according to the Labor Department. The upside to the inflation print (cooling faster than consensus) increases the odds of a more dovish rate path. Market moves are likely as the data reshapes near-term expectations for interest rates.