US Inflation Fell on Cheap Gas, But Relief Fading on Hormuz Blockade

June's US inflation slowdown was driven by a 12% drop in gasoline prices, which pulled producer and consumer prices lower, but that relief is already reversing as Brent crude surged 18% in a week following the reinstated Strait of Hormuz blockade, according to BeInCrypto. The producer price index fell 0.3% in June and consumer prices dropped 0.4%, both heavily benefiting from lower energy costs. Renewed US-Iran fighting after a collapsed ceasefire is now pushing oil higher, with Brent trading above $85. The Strategic Petroleum Reserve sits at its lowest since 1983, and analysts warn a physical shortage could revive Fed rate hike bets that faded after the soft data.