US inflation rate eases to 3.5% as gasoline prices fall
5 minutes ago
Michael RaceBusiness reporter, New York
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Inflation in the US eased last month as the cost of filling up at the pumps fell, official figures show.
Prices rose 3.5% in the year to June, according to the Bureau of Labor Statistics (BLS), down from 4.2% recorded in May.
Gasoline prices decreased 9.7% last month, but are still much more expensive than a year ago. On Tuesday, the national average had risen to $3.86 a gallon from $3.79 a week ago, according to motorist advocacy group AAA.
However, while the rate of inflation has fallen, the easing of price rises could be short-lived due to the renewed conflict in the Middle East sending global oil prices up again.
The price of a barrel of Brent crude, which is the global benchmark for oil, hit $87 on Tuesday, an increase of almost $10 in the space of 24 hours.
The spike in the price of the commodity came after the fresh military strikes on Iran by the US this week, with President Donald Trump declaring a new naval blockade in the Strait of Hormuz and a 20% charge on all cargo being shipped through the key waterway used for global trade.
