Investing.com – Annualized consumer price inflation (CPI) unexpectedly eased in June, while the core CPI repeated its prior reading, official data showed on Friday.
In a report, the U.S. Commerce Department said that consumer prices was unchanged in June from a month earlier, compared to forecasts for 0.1% increase and a 0.1% drop in the prior month.
Year-over-year, consumer prices increased 1.6% last month, below forecasts for a 1.7% increase and easing even further from the 1.9% advance seen in May.
Consumer prices, excluding food and energy costs, increased by a seasonally adjusted 0.1% last month, compared to estimates for a 0.2% increase and May’s 0.1% advance.
Core CPI increased at an annualized rate of 1.7% in June, in line with consensus and the previous month’s increase.
Core prices are viewed by the Federal Reserve (Fed) as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. The central bank usually tries to aim for 2% core inflation or less.
After the report, which was released simultaneously with retail sales for the same month, the dollar weakened. EUR/USD was trading at 1.1434 from around 1.1418 ahead of the release of the data, GBP/USD was at 1.2992, compared to 1.2974 previously, while USD/JPY was at 112.50 from 113.05 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.18, compared to 95.41 ahead of the report.
Meanwhile, U.S. stock futures pointed to a mixed open. The Dow futures dropped 5 points or 0.02%, the S&P 500 futures were unchanged, while the Nasdaq 100 futures rose 13 points, or 0.23%.
Elsewhere, in the commodities market, gold futures traded at $1,228.05 a troy ounce, compared to $1,221.71 ahead of the data, while crude oil traded at $46.58, compared to $46.62 prior to the release.