US consumer prices drop 0.4%, but Iran tensions threaten price surge

In June, US consumer prices dropped by 0.4 percent as energy costs fell, with petrol prices decreasing 9.5 percent according to Bureau of Labor Statistics data released on Tuesday. Energy prices tumbled 5.7 percent, but experts warn that renewed tensions between the US and Iran could lead to rising prices again. Food prices rose by 0.2 percent monthly, while meat prices increased 0.6 percent. Annual inflation remained high at 3.5 percent. Kevin Warsh, new Fed Chairman, emphasized no tolerance for elevated inflation, with an 87.7 percent probability of rates staying at 3.5-3.75 percent. US markets showed positive trends following the data release.