Rabat/ Anadolu

The annual inflation rate in the United States slowed to 3.5% in June, down from 4.2% in May, according to official data published on Tuesday.

This decline in inflation comes after months of upward pressure on prices in the world's largest economy.

The US Bureau of Labor Statistics said in a statement that the consumer price index fell by 0.4 percent on a monthly basis in June, after rising by 0.5 percent in May.

On an annual basis, the energy price index rose by 15.7%, led by an increase in gasoline prices of 26.7%.

Electricity prices rose by 4 percent, and natural gas by 3 percent, during the twelve months ending in June.

In contrast, the energy price index fell monthly by 5.7% in June, the biggest drop since April 2020, with gasoline prices down 9.7% and electricity down 1%.

The food price index rose by 3 percent on an annual basis, while core inflation, which excludes food and energy prices, recorded an annual increase of 2.6 percent, compared to 2.9 percent in May.

On a monthly basis, the core inflation index remained unchanged in June, after rising by 0.2 percent in the previous month.

These data come at a time when energy markets are experiencing sharp fluctuations, against the backdrop of renewed confrontations between the United States and Iran, and escalating threats to navigation in the Strait of Hormuz.

Oil prices rose on Tuesday to their highest levels in about a month, amid fears of an impact on energy flows through the strait, which is a major corridor for global oil shipments.

The escalation resumed after the United States resumed its attacks on Iran, allegedly in response to targeting commercial ships in the Strait of Hormuz, while Tehran responded with attacks it said targeted US military facilities in the region.

This comes after the temporary agreement reached by Washington and Tehran last June to stop the war and reopen the Strait of Hormuz, pending negotiations on a final agreement, collapsed.

These data come at a time of increasing geopolitical tensions in the Gulf region, casting a shadow over energy markets. Financial markets are expected to monitor the Federal Reserve's upcoming moves on interest rates in light of these indicators.