CPI for all items falls 0.4% in June; gasoline down

The annual inflation rate fell to 3.5% in June, down from 4.2% in May, according to the U.S. Bureau of Labor Statistics. Consumer prices declined 0.4% from May to June, marking the largest monthly drop since April 2020, driven largely by a sharp decline in energy prices.

Energy prices fell 5.7% during the month, helping offset continued increases in housing and food costs. Food prices rose 0.2% in June and are up 3.0% over the past year, while the core inflation rate—which excludes the more volatile food and energy categories—increased 2.6% over the past 12 months.