June 2026 inflation eases as energy prices fall

U.S. consumer prices fell in June 2026 as lower gasoline and energy costs offset increases in some other categories, according to the Bureau of Labor Statistics. The consumer price index rose 3.5% from a year earlier, down from 4.2% in May. On a monthly basis, the CPI declined 0.4%, its largest drop since April 2020. Energy was the biggest driver of the decline, while shelter and food continued to rise. Gasoline, fuel oil, and the broader energy category all fell during the month, though they remained higher than a year earlier. Economists said the softer reading could reduce pressure on the Federal Reserve to raise interest rates, but they warned that renewed tensions involving the U.S. and Iran could push oil prices and inflation higher again in coming months.