Inflation cooled off in June as energy prices slid

Inflation cooled off in June as energy prices slid Emma Ockerman Updated Tue, July 14, 2026 at 3:23 PM GMT+2 2 min read 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.

Headline and core inflation, June 2026 · Yahoo Finance 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 .