US inflation slows to 3.5% as fuel costs ease
Lower gasoline prices helped cool US inflation in June, though renewed Middle East tensions could push energy costs higher again.
US consumer prices rose 3.5% in June from a year earlier, easing from the previous month as cheaper gasoline helped slow the pace of inflation, according to the latest figures cited by BBC Business. The reading suggests price growth cooled even as households continued to face higher costs in several areas.
The decline in fuel prices was the main factor behind the softer inflation rate, with energy markets still sensitive to events abroad. BBC Business said worries remain that the conflict in the Middle East could lift oil and gasoline prices again.
Forbes Business noted that gasoline prices are shaped not only by supply and demand but also by traders' expectations about future conditions. That means shifts in sentiment can move prices even before physical shortages or disruptions appear.
The June data adds to a picture of inflation that has eased but remains vulnerable to swings in energy markets, which have repeatedly influenced the broader cost of living in the US.
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