U.S. consumer inflation slows in June, according to new data from the Bureau of Labor Statistics. The consumer price index (CPI) rises 3.5% year over year, down from a 4.2% increase in May and representing a notable retreat from the prior month’s three-year high. On a monthly basis, CPI falls 0.4% in June, with multiple outlets citing it as the largest single-month decline since 2020. The cooling is attributed largely to lower energy costs after a brief U.S.-Iran deal that reduces oil-related prices temporarily. Core inflation, which excludes volatile food and energy, is reported around 2.6%, with some outlets describing it as slightly lower and others as flat.
Several reports note that the decline may be temporary. Renewed hostilities and the deal’s expiration are pushing oil prices higher again, and recent increases in gasoline prices are cited as potential headwinds. Analysts and outlets also highlight that uncertainty around Middle East developments could affect future inflation readings, even as the June report provides short-term relief.
