June Inflation Drops to 3.5% Amid Brief US-Iran Ceasefire

US inflation cooled to an annual rate of 3.5% in June, a decrease attributed to a temporary reduction in energy prices that followed a brief ceasefire between the United States and Iran. This ceasefire has since ended, and recent strikes have contributed to a renewed climb in oil prices, with the average gas price per gallon increasing by 70 cents compared to the previous year. The Bureau of Labor Statistics released this data, which tracks the consumer price index (CPI) for a basket of goods and services. The CPI had been elevated since the start of the war, primarily due to higher energy costs. In May, CPI reached a three-year high of 4.2%, up from 2.4% in February, after remaining mostly below 3% since mid-2024. Excluding volatile energy and food prices, core inflation saw a slight decrease to 2.6% in June.