Falling gas prices led to easing inflation in June

The Consumer Price Index for All Urban Consumers (CPI-U) decreased 0.4% on a seasonally adjusted basis in June after rising 0.5% in May, the U.S. Bureau of Labor Statistics reported Tuesday. This decline in the all items index was the largest 1-month decrease since April 2020 when it fell 0.8%.

"Falling gas prices led June's decline and pulled headline inflation lower year-over-year. Renewed hostilities could complicate the energy picture ahead, and a reversal in gasoline costs would be the most likely channel for that pressure to show up,” said America's Credit Unions Senior Economist Dawit Kebede. “But softening core prices point to broader-based moderation, suggesting the easing isn't confined to energy alone. That's welcome news for a Federal Reserve that has kept its focus on price stability."