US consumer inflation slowed more than expected to 3.5% year-on-year (YoY) in June, but remained above the Federal Reserve’s 2% target, according to data released Tuesday by the Bureau of Labor Statistics.
Meanwhile, the CPI recorded its largest monthly decline since April 2020, falling 0.4% in June, with fuel prices dropping 9.7% month-on-month.
This decline in fuel prices followed the memorandum of understanding signed last month by Washington and Tehran, which led to a drop in oil prices, before renewed military strikes between the two sides this month following the collapse of the ceasefire agreement.
US CPI – June 2026 (%)
CPI
Expectations
May
June
Change
Annual Core
2.8
2.9
2.6
(0.3)
Monthly Core
0.2
0.2
0.0
(0.2)
Annual Headline
3.8
4.2
3.5
(0.7)
Monthly Headline
(0.1)
0.5
(0.4)
(0.9)
US consumer inflation slowed more than expected to 3.5% year-on-year (YoY) in June, but remained above the Federal Reserve’s 2% target, according to data released Tuesday by the Bureau of Labor Statistics.
Meanwhile, the CPI recorded its largest monthly decline since April 2020, falling 0.4% in June, with fuel prices dropping 9.7% month-on-month.
This decline in fuel prices followed the memorandum of understanding signed last month by Washington and Tehran, which led to a drop in oil prices, before renewed military strikes between the two sides this month following the collapse of the ceasefire agreement.
US CPI – June 2026 (%)
CPI
Expectations
May
June
Change
Annual Core
2.8
2.9
2.6
(0.3)
Monthly Core
0.2
0.2
0.0
(0.2)
Annual Headline
3.8
4.2
3.5
(0.7)
Monthly Headline
(0.1)
0.5
(0.4)
(0.9)
