Inflation slowed more than expected in June, easing to an annual rate of 3.5% from 4.2% in May as lower gasoline prices helped cool price growth, according to Labor Department data released Tuesday.
Economists polled by the financial data firm FactSet predicted June inflation would rise at an annual rate of 3.9%.
The cooler reading comes after three consecutive months of increases that pushed the CPI to its highest level in more than three years. Inflation slowed as a result of declining energy prices, with gasoline prices tumbling 9.7% in June from a month earlier.
June’s decline represented the largest one-month decrease since April 2020, the Bureau of Labor Statistics said.
With oil and gasoline prices falling in June and early July, May may represent this year’s peak inflation reading, Oxford Economics said in a report published July 14.
The CPI, a basket of goods and services typically bought by consumers, tracks changes in prices over time.
Core CPI, which excludes the more volatile energy and food categories, rose at an annual rate of 2.6%, down from 2.9% in May and below economists’ expectations.
—This is breaking news and will be updated.
