U.S. CPI inflation dropped to 3.5% in June 2026

The Bureau of Labor Statistics reported Tuesday that the Consumer Price Index for All Urban Consumers roseate 3.5% implicit the 12 months ending successful June, down from a 4.2% yearly complaint successful May.

On a monthly basis, the all-items scale fell 0.4% connected a seasonally adjusted ground successful June, aft rising 0.5% successful May. That monthly diminution was the largest since April 2020, erstwhile the scale fell 0.8%.

Energy was the ascendant driver. The vigor scale fell 5.7% successful June, its largest 1-month diminution since April 2020, much than offsetting terms increases successful different categories including structure and food. Gasoline prices dropped 9.7% implicit the month, contributing the bulk of the pullback. Over the past 12 months, the vigor scale remained 15.7% higher, with gasoline up 26.7% twelvemonth implicit year.

The scale for each items little nutrient and vigor was unchanged successful June aft rising 0.2% successful May. Over the past 12 months, that halfway measurement roseate 2.6%, down from 2.9% for the 12 months ending successful May.

Within halfway categories, the structure scale roseate 0.1% successful June, the smallest 1-month alteration reported for that scale since January 2021. Owners' equivalent rent accrued 0.2% and rent of superior residence roseate 0.1%. Over the past year, structure is up 3.3%.

Motor conveyance security fell 2.0% successful June aft dropping 1.7% successful May, and the connection scale declined 1.5%. Apparel fell 0.6% and utilized cars and trucks slipped 0.2%. On the different side, the recreation scale roseate 0.5% and household furnishings and operations accrued 0.2%.

Food prices roseate 0.2% successful June, the aforesaid gait arsenic successful May. Groceries were up 0.2% for the month, with the eggs scale climbing 4.3% and dairy rising 1.2%. Nonalcoholic beverages fell 1.5%, arsenic java prices declined 2.0%. The nutrient scale is up 3.0% implicit the past 12 months.

Notable year-over-year increases extracurricular of vigor see hose fares, up 26.5%, and centrifugal conveyance attraction and repair, up 7.0%. Motor conveyance security fell 4.1% implicit the past year. Medical attraction commodities declined 2.1% twelvemonth implicit year.

The adjacent CPI release, covering July 2026 data, is scheduled for Wednesday, August 12, 2026.