US June inflation eases as AI data‑center spending fuels price pressure

Consumer price inflation in the United States fell to 3.5% year‑over‑year in June, the largest monthly drop in four years, as prices for gas, clothing and used cars declined. The Labor Department said the overall price index fell 0.4% from May.

Economists warn that massive investment in AI‑driven data centers, projected to exceed $700 billion this year, is tightening supplies of memory chips, processors and electricity, which could keep underlying price pressures higher than the Federal Reserve would like. The central bank may consider raising its policy rate later this year to prevent a resurgence of inflation.

Mortgage rates rose as the benchmark 30‑year fixed‑rate mortgage climbed to 6.55%, the highest level in nearly a year, increasing borrowing costs for homebuyers. Oil prices also edged higher after the United States renewed attacks on Iran and President Donald Trump announced a new blockade of the Strait of Hormuz, a key oil shipping lane.