U.S. CPI Falls 0.4% in June, Largest Monthly Decline Since April 2020; Gas Hits $3.86

According to Bureau of Labor Statistics, the U.S. Consumer Price Index (CPI) fell 0.4% in June on a seasonally adjusted basis, the largest monthly decline since April 2020. The energy index plunged 5.7% in June, with gasoline averaging $3.86 per gallon, down sharply from a May peak above $4.50, according to AAA data. Over the last 12 months, headline prices rose 3.5%.

The cooling inflation reading bolsters expectations for Federal Reserve policy shifts, supporting risk assets including Bitcoin, which traded near $64,150 amid the disinflation trend and lingering geopolitical uncertainties.