Inflation Cools Further

Wholesale and consumer prices fell in June as energy costs eased, but relief may not last.

•Center & Right

Inflation slowed to 3.5% in June as gas prices fell

Producer Price Inflation Slowed in June as Hormuz Reopened

US producer prices drop 0.3% from May to June on lower energy prices, but outlook is cloudy

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A neutral summary of the key facts most outlets agree on, drawn from reporting across the political spectrum.

U.S. consumer prices fell 0.4% from May to June, lowering annual CPI inflation to 3.5% from 4.2% in May, as gasoline, energy, clothing and used-car prices declined. The BLS energy index dropped 5.7% in June, offsetting continued increases in housing and food, while core CPI also eased more than expected. Wholesale inflation also retreated: the producer price index fell 0.3% in June, with annual PPI slowing to 5.5% from 6.2% in May. Renewed U.S.-Iran hostilities threaten to push energy costs back up and limit further disinflation.

Day 2

Latest update · Jul 16

U.S. producer prices unexpectedly fell 0.3% from May to June, the biggest decline since April 2025, as plunging energy costs reversed a revised 0.6% increase the prior month and lowered annual wholesale inflation to 5.5%. The producer price index tracks costs before they reach consumers, adding to a June inflation picture in which consumer prices also fell 0.4% and annual CPI cooled to 3.5%. Economists said the relief may not last because renewed U.S.-Iran hostilities could again push oil and gasoline prices higher after energy costs eased when the Straits of Hormuz reopened.

Analysis & opinion

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Energy-led reliefMostly Center

Lower gasoline and energy costs were the main reason inflation cooled in June. Renewed fighting involving Iran or the broader Middle East could push energy prices back up and make the inflation improvement temporary.