The Consumer Price Index rose 0.2% in June, less than the 0.3% increase expected, but more than the 0.1% increase in May. But stripping out volatile food and energy prices, inflation eased more than expected.
Core CPI, which excludes food and energy, increased 0.2% in June, less than the 0.3% increased expected and the 0.4% rise in May. That's the smallest one-month increase in the index since August 2021. Y/Y, core CPI rose 4.8% vs. +5.0% expected and +5.3% prior.
The number is still well above the Federal Reserve's 2% inflation goal. The probabilty of a 25-basis-point rate hike at the Fed's July 25-26 meeting stands at 92.4%, up from 90.5% a week ago, according to the CME FedWatch tool.
