US inflation falls to 3.7% in June amid cheaper oil
US inflation cooled off in June, with prices rising 3.7% compared to last year, down from May's 4.1%.
The 0.1% month-over-month decline in the PCE Price Index was the weakest monthly reading since April 2020.
The drop was mostly thanks to cheaper oil during a brief U.S.-Iran cease-fire, but now oil prices are climbing again, with Brent crude topping $90 a barrel and average gas prices in the US hitting over $4 per gallon.
US core inflation 3.3%, Fed holds
Core inflation (which leaves out food and energy) also dipped slightly, rising 3.3% for the year.
People's spending rose in June, just a 0.3% bump after a bigger jump in May, and more folks are dipping into their savings, which hit their lowest point since June 2022 at 2.7%.
The Federal Reserve kept interest rates steady this week but says it's sticking to its goal of bringing inflation down to 2%.
If prices stay high, economists think rate hikes could be coming as soon as September.