US inflation in June was much weaker than expected, likely putting on hold what were rapidly rising expectations of imminent Federal Reserve rate hikes.
The Consumer Price Index (CPI) fell 0.4% in June compared to economists’ forecasts for a 0.1% drop and May’s sharp 0.5% rise.
Year over year, the CPI rose 3.5% versus forecasts of 3.8% and 4.2% in May.
The core CPI, which excludes food and energy, was stable in June, compared to forecasts of 0.2% and a 0.2% increase in May. Year-over-year, core CPI rose 2.6% versus expectations of 2.8% and 2.9% in May.
Bitcoin added to earlier gains following the weak numbers, rising to $63,400, up about 2% in the last 24 hours. US stock index futures also rose, with the Nasdaq 100 up 1.25%.
Bond yields fell sharply, with the two-year US Treasury down seven basis points to 4.19% and the 10-year bond down five basis points to 4.56%.
