US Inflation Slows to 3.5% in June

The rate of increase in the Consumer Price Index in the United States slowed to 3.5% year-over-year in June, but it remains above the Federal Reserve's target of 2%, according to data released Tuesday by the Bureau of Labor Statistics.

Meanwhile, the Consumer Price Index recorded its largest monthly decline since April 2020, falling 0.4% in June, with fuel prices dropping 9.7% month-over-month.

This decline in fuel prices follows the memorandum of understanding signed by Washington and Tehran last month, which led to lower oil prices, and comes before renewed military strikes between the two sides this month with the collapse of the ceasefire agreement.

Change in Consumer Price Index – June 2026 (%)

Price Index

Forecast

May

June

Change

Core/Annual

2.8

2.9

2.6

(0.3)

Core/Monthly

0.2

0.2

0.0

(0.2)

Overall/Annual

3.8

4.2

3.5

(0.7)

Overall/Monthly

(0.1)

0.5

(0.4)

(0.9)

Inflation

US Economy

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