US inflation data comes in lighter than expected in June

US inflation rose at a less-than-expected pace in June, in the latest sign that the Federal Reserve's monetary tightening stance is having an impact on price pressures.

On a monthly basis, the Consumer Price Index (CPI), which measures a broad swath of prices for goods and services, climbed by 0.2% in June, against expectations for a 0.3% uptick after rising 0.1% in the previous month.

Annually, the index slowed to 3% in June — the slowest inflation rate since March 2021 — from 4% in May. 

Excluding volatile food and energy prices, core consumer prices surged 4.8% year-on-year (YoY) and 0.2% month-on-month (MoM), although forecasts suggested an increase of 5% and 0.3%, respectively.

However, core consumer inflation is still much higher than the Fed's target of 2%.