Inflation cooled off in June as energy prices slid
Inflation cooled off in June as energy prices slid.
Growth in consumer prices cooled more than expected in June — albeit from an already high level — as drivers saw some relief at the pump.
The Consumer Price Index, released Tuesday, showed inflation declined 0.4% on a monthly basis in June, the largest single-month decline since April 2020. Annual inflation also eased to 3.5%, the government said, in the lowest yearly reading since March.
Economists surveyed by Bloomberg had expected inflation to fall just 0.1% from May and rise 3.8% from a year ago, a moderation from May's bruising report as gas prices eased thanks to a now-disintegrating ceasefire in the war with Iran.
Indeed, the index for energy prices tumbled 5.7% in June, while the gasoline index fell 9.7%, though both remain much hotter than a year ago. Food prices, meanwhile, ticked up 0.2%, with lettuce and fish costs driving higher.
"The renewed war in Iran will almost certainly push inflation back up. Relief could be short-lived. But this should give the Federal Reserve some time to see wait and see for awhile," Heather Long, chief economist at the Navy Federal Credit Union, posted on X .
On a "core" basis, stripping out volatile energy and food categories, price growth slid to 2.6% on an annual basis, and was flat for the month. Economists had seen inflation rising 0.2% from May and 2.8% from last year.
The CPI report comes just before Federal Reserve Chairman Kevin Warsh is set to face questioning for the first time on Capitol Hill Tuesday, with inflation a key focus. The data also dropped alongside a slew of blowout earnings reports from JPMorgan , Bank of America , and other banks, with results pointing to a resilient economy.
Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at emma.ockerman@yahooinc.com .
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Sinergia Empresarial continuará el seguimiento de esta información sobre inflation cooled off in June as energy prices slid y ampliará la cobertura conforme se confirmen nuevos elementos relevantes para el ecosistema empresarial.
