Arabic version: انخفاض تضخم المستهلكين إلى 3.5%؛ المتعاملون يقلّصون رهاناتهم على رفع الفائدة من الاحتياطي الفيدرالي

US inflation cooled more than expected in June, with consumer prices recorded at an annual rate of 3.5%, a drop attributed in the report to a sharp tumble in petrol prices.

According to Financial Times, traders rein in bets on Fed rate rises as easing energy costs help tame price surges spurred by Middle East war.

The fall in petrol and wider energy costs was highlighted as a key factor moderating headline inflation, reducing the immediate upward pressure on prices that had followed disruptions linked to the Middle East war. The report links the easing in energy-related costs with the overall slowdown in consumer price growth for the month.

The Financial Times piece notes that, in response to the softer inflation print and weaker energy prices, traders have scaled back wagers on further Federal Reserve rate rises. That shift in market expectations is presented in the report as a reaction to the changing inflation backdrop driven in part by lower petrol and energy costs.

The report frames the drop to a 3.5% annual rate in June and the tumble in petrol prices as central to the reassessment of rate-rise odds: easing energy costs are cited as helping to tame the price surges that had been linked to the Middle East war. The article connects those developments to how market participants adjust expectations about monetary policy when inflation and energy data move in a more favourable direction.

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