US Inflation Falls to 3.5% in June

US inflation decreased to 3.5% in the 12 months through June, a significant drop from the 4.2% recorded in May, according to data released by the U.S. Labor Department's Consumer Price Index (CPI) on Tuesday. This decline beat economists' expectations and offers a potential reprieve for Federal Reserve policymakers and prospective homebuyers. The overall price index saw a monthly decrease of 0.4% in June compared to May, primarily attributed to a sharp 5.7% decline in energy prices. This reduction in energy costs more than offset a 0.2% increase in the food index for the same month. The fall in energy prices was influenced by a temporary ceasefire between the U.S. and Iran, which led to a decrease in global oil prices, though hostilities have reportedly resumed. Core inflation, which excludes volatile food and energy components, also cooled, falling to 2.6%. The previous month's inflation rate of 4.2% had marked a three-year high.