Consumer prices fell 0.4% in June as energy costs declined
Annual inflation eased to 3.5%, while core prices were unchanged from May.
WASHINGTON (OBV) — U.S. consumer prices fell 0.4% in June, the largest monthly decline since April 2020, according to the Bureau of Labor Statistics.
The decrease followed a 0.5% increase in May and was driven largely by a 5.7% drop in energy prices. Gasoline prices fell 9.7% during the month, while electricity costs declined 1%.
Despite the monthly decline, overall consumer prices remained 3.5% higher than a year earlier. Energy prices were up 15.7% over the year, including a 26.7% increase in gasoline prices.
Core prices, which exclude food and energy, were unchanged in June and increased 2.6% over the previous 12 months.
Food prices rose 0.2% during the month, with grocery and restaurant prices each increasing 0.2%. Shelter costs edged up 0.1%, their smallest monthly increase since January 2021.
The Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, also increased 3.5% over the year.
