June CPI Report Shows Inflation Softening at a 3% Annual Rate

The Bureau of Labor Statistics reported that the Consumer Price Index climbed 3.0% in June from year-ago levels—a decrease from May’s 3.3% rate.

The CPI decreased 0.1% from month-ago levels after being unchanged in May. Core CPI, which excludes volatile food and energy costs, climbed 3.3% over the last 12 months after rising 3.4% in May. Monthly core CPI increased 0.1% in June after rising 0.2% in May.

Economists anticipated that the overall CPI would rise 0.1% on a monthly basis in June, according to FactSet’s consensus estimates. The forecasts called for the annual inflation rate to fall to 3.1% from 3.3%. Core inflation was expected to remain slightly higher, at 0.2% growth on a monthly basis and 3.4% growth on an annual basis.

June CPI Report Key Stats

• CPI decreased 0.1% after being unchanged in May.
• Core CPI climbed 0.1% after rising by 0.2% in May.
• CPI increased 3.0% year over year after growing by 3.3% the prior month.
• Core CPI rose 3.3% from year-ago levels after growing 3.4% in May.

Food prices increased 0.2% after growing 0.1% in May. Food-at-home prices increased 0.1% over the month, while food-away-from-home (restaurant) prices increased 0.4%.

Energy prices were mixed after declining 2% the prior month. Utility (piped) gas service prices climbed 2.4%, fuel oil prices fell 2.4%, gasoline prices fell 3.8%, and electricity prices fell 0.7%.

Shelter prices increased 0.2% after rising 0.4% in May.