Consumer Price Index: Inflation Cools to 3.0% in June

Inflation cooled for a third straight month in June, dropping to its lowest level in a year. According to the Bureau of Labor Statistics, the headline figure for the Consumer Price Index fell to 3.0% year-over-year while core CPI cooled to 3.3%. Both readings were lower than their respective forecasts (headline forecast: 3.1%, core forecast: 3.4%). Compared to last month, headline prices were down 0.1% and core prices increased 0.1%. Again, both readings were lower than their respective forecasts (headline forecast: 0.1%, core forecast: 0.2%).

Here is the introduction from the BLS summary, which leads with the seasonally adjusted monthly data:

The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent on a seasonally adjusted basis, after being unchanged in May, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.0 percent before seasonal adjustment.

The index for gasoline fell 3.8 percent in June, after declining 3.6 percent in May, more than offsetting an increase in shelter. The energy index fell 2.0 percent over the month, as it did the preceding month. The index for food increased 0.2 percent in June. The food away from home index rose 0.4 percent over the month, while the food at home index increased 0.1 percent.

The index for all items less food and energy rose 0.1 percent in June, after rising 0.2 percent the preceding month. Indexes which increased in June include shelter, motor vehicle insurance, household furnishings and operations, medical care, and personal care. The indexes for airline fares, used cars and trucks, and communication were among those that decreased over the month.

The all items index rose 3.0 percent for the 12 months ending June, a smaller increase than the 3.3-percent increase for the 12 months ending May. The all items less food and energy index rose 3.3 percent over the last 12 months and was the smallest 12-month increase in that index since April 2021. The energy index increased 1.0 percent for the 12 months ending June. The food index increased 2.2 percent over the last year.