WASHINGTON, D.C. — Today, the Bureau of Labor Statistics announced that inflation, as measured by the consumer price index (CPI) on all items, increased by 3.5% for the 12 months ending in June, down from last month’s 4.2% reading. From May to June, the inflation rate decreased 0.4% after rising 0.5% in May, the largest 1-month decrease since April 2020.
Core inflation, which excludes volatile energy and food prices, remained steady at 0.0% in June and increased at a pace of 2.6% year-over-year in June, also down from 2.9% in May.
Energy prices decreased 5.7%, and gasoline prices fell 9.7% last month. Apparel also decreased by 0.6%. Meat and milk prices, however, increased 0.9% and 2.0%, respectively, in June.
Real average hourly earnings for all private-sector workers increased in June, up 0.1% over the past year.
Patrice Onwuka, vice president for economic policy at Independent Women, issued the following statement:
“June’s inflation drop is massive. Readings for overall CPI and core inflation year-over-year came in below economists’ expectations. The precipitous decline in energy prices as tensions calmed in the Strait of Hormuz following the ceasefire is a reminder that today’s inflation is entirely driven by global energy shocks, not fundamental weakness in the U.S. economy. This is the opposite of the inflation spike in 2022 under the Biden administration.
“Americans gained relief at the pump and the grocery store as the national average for gas fell well below $4 a gallon and prices eased on a number of household pantry items. Encouragingly, real wages are outpacing inflation again as well, which means your paycheck goes further. We hope this continues.
“That inflation is falling quickly again should also be an encouragement for the Federal Reserve to cut interest rates in the near future instead of raising them when they meet in two weeks.
“Congress and President Trump should be commended for their efforts on affordability. The Working Families Tax Cuts and the recently passed 21st Century ROAD to Housing Act are both laws that will make life more affordable for Americans now—by allowing hardworking Americans to keep more of their income—and in the future—by expanding the housing supply to bring down housing costs. If there’s an opportunity for another tax relief and deregulatory bill, Congress should take it.”
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