US consumer inflation slowed more than expected in June, sending Bitcoin above $64,000 as traders scaled back bets that the Federal Reserve would raise interest rates this month.

The Consumer Price Index fell 0.4% from May, marking its first monthly decline since April 2020. Economists had expected prices to decline 0.1%. Annual inflation slowed to 3.5% from 4.2% in May, below the 3.8% consensus forecast.

Core inflation, which excludes food and energy, was unchanged during the month and rose 2.6% from a year earlier. The annual figure declined from 2.9% in May and remained above the Federal Reserve’s 2% target.

Bitcoin climbed from around $62,900 before the report to nearly $63,800 within 30 minutes of its release. The asset later moved above $64,600, gaining more than 4% during the session after reaching an intraday low near $61,800.

Traders reduced the probability of a July rate increase to around 10% from approximately 35% before the inflation report. Markets still saw a roughly 60% chance that the Fed would raise rates in September.

Lower energy prices drove much of the moderation. Energy costs fell 5.7% during June, while gasoline prices declined 9.7%. Food prices increased 0.2%, while shelter recorded its smallest monthly increase since January 2021.

The softer report also lifted US stocks, weakened the dollar and pushed Treasury yields lower as investors reduced expectations for immediate monetary tightening.

Federal Reserve Chair Kevin Warsh cautioned against drawing strong conclusions from a single inflation report, saying the central bank continued to have no tolerance for persistently elevated inflation.

June’s improvement may prove temporary as renewed conflict between the United States and Iran pushes oil and gasoline prices higher again. Economists warned that rising energy and transportation costs could place renewed pressure on inflation in July.