The US dollar index dropped below 98 on Tuesday after June’s CPI data showed core inflation rising less than expected for the fifth month in a row. The overall US inflation rate rose to 2.7% in June, the highest since February, matching forecasts. Monthly CPI increased 0.3%, the biggest rise in five months, also as expected. Core inflation climbed 2.9% annually, slightly below the 3% forecast, and monthly core CPI rose 0.2%, less than the predicted 0.3%. Interest-rate futures suggest only a small chance of a cut this month, but a rate cut in September is likely. Fed Chair Jerome Powell said inflation may rise this summer due to tariffs, hinting rate cuts might be delayed. Meanwhile, President Trump criticized Powell, pushing for lower rates, and warned of 100% tariffs on Russia if no peace deal in 50 days, while signaling openness to further tariff talks with the EU.