The latest inflation report shows a continued cooling trend in the United States for June. The Consumer Price Index registered a monthly decline of 0.4%, marking the largest single-month drop since April 2020. The annual inflation rate eased to 3.5%. A significant 5.7% monthly decrease in energy costs was a primary driver, with gasoline prices alone falling by 9.7%. The full details of the CPI report are presented below.
The U.S. Bureau of Labor Statistics reported that the seasonally adjusted Consumer Price Index for All Urban Consumers (CPI-U) decreased by 0.4 percent in June, following a 0.5 percent increase in May. This represents the largest monthly decline since the index fell 0.8 percent in April 2020. Over the past 12 months, the all-items index, not seasonally adjusted, increased by 3.5 percent.
The energy index fell 5.7 percent in June, a sharp reversal from the increases of 10.9 percent in March, 3.8 percent in April, and 3.9 percent in May. The decline in the energy index was the largest contributor to the overall monthly decrease in the CPI, more than offsetting increases in indexes such as shelter and food. The food index rose 0.2 percent over the month, with both the food at home index and the food away from home index increasing by 0.2 percent.
The core CPI, which excludes food and energy, was unchanged in June. Indexes that declined included those for motor vehicle insurance, communication, apparel, medical care, and used cars and trucks. Conversely, indexes for recreation, household furnishings and operations, and personal care were among those that increased over the month.
Over the 12-month period ending in June, the all-items CPI rose 3.5 percent, a slowdown from the 4.2 percent increase for the 12 months ending in May. The core CPI rose 2.6 percent over the year, compared to a 2.9 percent increase for the period ending in May. The energy index increased 15.7 percent over the last 12 months, while the food index increased 3.0 percent.
Food Category Details
The food index increased 0.2 percent in June, matching its May increase. The food at home index also rose 0.2 percent. Within this category, four of the six major grocery store food group indexes increased.
The index for meats, poultry, fish, and eggs increased 0.6 percent, with the index for eggs rising 4.3 percent. The index for other food at home rose 0.5 percent, the dairy and related products index increased 1.2 percent, and the cereals and bakery products index rose 0.3 percent.
In contrast, the index for nonalcoholic beverages fell 1.5 percent, with the index for coffee declining 2.0 percent. The fruits and vegetables index decreased 0.2 percent over the month.
The food away from home index rose 0.2 percent in June. The index for full-service meals rose 0.4 percent, while the index for limited-service meals increased 0.1 percent.
Over the past year, the food at home index increased 2.7 percent. The fruits and vegetables index rose 5.3 percent; other food at home increased 2.4 percent; meats, poultry, fish, and eggs rose 2.6 percent; nonalcoholic beverages increased 2.9 percent; cereals and bakery products rose 2.4 percent; and dairy and related products increased 0.4 percent.
The food away from home index rose 3.4 percent over the last 12 months. Within this category, the index for full-service meals rose 3.7 percent, and the index for limited-service meals increased 3.1 percent.
Energy Category Details
The energy index fell 5.7 percent in June, the largest monthly decline since April 2020.
The gasoline index decreased 9.7 percent over the month. (Before seasonal adjustment, gasoline prices also fell 9.7 percent in June.) The electricity index fell 1.0 percent, while the natural gas index increased 0.5 percent.
Over the past 12 months, the energy index increased 15.7 percent, largely driven by a 26.7 percent rise in gasoline prices. Over the same period, the electricity index rose 4.0 percent, and the natural gas index increased 3.0 percent.
Core Items Excluding Food and Energy
The core CPI was unchanged in June, following a 0.2 percent increase in May.
The shelter index rose 0.1 percent, its smallest monthly increase since January 2021. The owners' equivalent rent index increased 0.2 percent, and the rent index rose 0.1 percent, while the index for lodging away from home fell 2.3 percent.
The motor vehicle insurance index fell 2.0 percent in June, after declining 1.7 percent in May. The communication index decreased 1.5 percent, the apparel index fell 0.6 percent, and the used cars and trucks index declined 0.2 percent.
The medical care index declined 0.1 percent in June after rising 0.3 percent in May. The index for physicians' services fell 0.2 percent, and the prescription drugs index decreased 0.1 percent; in contrast, the hospital services index rose 0.1 percent.
The recreation index rose 0.5 percent in June after increasing 0.3 percent the prior month. The household furnishings and operations index increased 0.2 percent, as did the personal care index. The new vehicles index was unchanged in June after falling 0.3 percent in May.
Over the 12 months ending in June, the core CPI increased 2.6 percent. The shelter index rose 3.3 percent over the year. Other notable annual increases included: airline fares, up 26.5 percent; medical care, up 2.0 percent; recreation, up 2.8 percent; and household furnishings and operations, up 2.5 percent.
Unadjusted CPI Data
For the 12 months ending in June, the Consumer Price Index for All Urban Consumers (CPI-U) increased 3.5 percent (not seasonally adjusted). The index stood at 333.952 (1982-84=100). Unadjusted, the index decreased 0.3 percent in June.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 3.5 percent over the last 12 months, with an index level of 327.075 (1982-84=100). Unadjusted, the index decreased 0.5 percent in June.
The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 3.4 percent over the past 12 months. Unadjusted, the index decreased 0.3 percent in June. It is important to note that the Chained CPI data for the last 10 to 12 months are subject to revision.
The U.S. Bureau of Labor Statistics is scheduled to release the Consumer Price Index for July on Wednesday, August 12, 2026, at 8:30 PM Eastern Time.
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