Inflation Drops to 3.5% in June, Energy Prices Fall After Brief US-Iran Deal
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Inflation cooled to an annual rate of 3.5% in June, according to new data from the Bureau of Labor Statistics, as a brief US-Iran ceasefire that has since ended brought energy prices down. The consumer price index (CPI) had reached a three-year high of 4.2% in May, up from 2.4% in February. Month-over-month, CPI fell 0.8% in June, the largest one-month decrease since April 2020. Declines in the energy index were the largest contributor to the overall decline, with gasoline prices dropping 9.7% and fuel oil down 9.2% from May to June. Core inflation, which excludes volatile energy and food prices, decreased slightly to 2.6% on a yearly basis and remained flat from the previous month. Despite the relief, recent strikes between the US and Iran have sent oil prices climbing again, with Brent crude hitting $80 on Monday after a recent low of $67 earlier in July. The national average price for a regular gallon of gas increased to $3.87 last week, 70 cents more than a year ago.
What’s reported
Inflation cooled to an annual rate of 3.5% in June, according to Bureau of Labor Statistics data.
CPI reached a three-year high of 4.2% in May, up from 2.4% in February.
Month-over-month CPI fell 0.8% in June, the largest one-month decrease since April 2020.
Gasoline prices dropped 9.7% and fuel oil fell 9.2% from May to June.
Core inflation decreased to 2.6% on a yearly basis and remained flat from the previous month.
Brent crude hit $80 on Monday after a recent low of $67 earlier in July.
National average gas price increased to $3.87 a gallon last week, 70 cents more than a year ago.
Delta said it expected high airfares to last and has passed on 60% of its extra fuel costs to consumers.
A Harris-Guardian poll found 95% of Americans believe the country is in an affordability crisis.
The average number of jobs added from April through June was 111,000.
The Federal Reserve will meet on July 28 and 29 to weigh rising prices and the labor market.
Fed Chair Kevin Warsh vowed that "the inflation surge of the last five years will be a thing of the past."
Key figures
Donald Trump, former US president
Kevin Warsh, new Federal Reserve chair
Bureau of Labor Statistics (agency)
Delta (company)
Sources: The Guardian
