{"id":526139,"date":"2026-07-14T20:05:08","date_gmt":"2026-07-14T20:05:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/526139\/"},"modified":"2026-07-14T20:05:08","modified_gmt":"2026-07-14T20:05:08","slug":"us-consumer-prices-drop-in-june-as-energy-costs-tumble-inflation-news","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/526139\/","title":{"rendered":"US consumer prices drop in June as energy costs tumble | Inflation News"},"content":{"rendered":"

Inflation eased due to cheaper energy, but experts warn price increases may return after renewed US-Iran tensions.<\/p>\n

Consumer prices in the United States tumbled in June as energy prices fell, led by cheaper petrol, after concerns in global energy markets over the Strait of Hormuz temporarily eased.<\/p>\n

Prices fell by 0.4 percent on a monthly basis, according to the Department of Labor\u2019s Bureau of Labor Statistics Consumer Price Index (CPI) released on Tuesday.<\/p>\n

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Energy prices led the declines, tumbling 5.7 percent, marking the biggest monthly decline since April 2020. Oil prices led the way, falling 9.7 percent, while petrol prices dropped 9.5 percent.<\/p>\n

The average price for a gallon of petrol (3.78 litres) is $3.85, down from $4.07 at this time last month, according to the American Automobile Association (AAA), which tracks daily petrol prices.<\/p>\n

\u201cPresident [Donald] Trump consistently said that, as traffic in the Strait of Hormuz normalizes, oil prices \u2013 and thus overall inflation \u2013 would plummet like a rock,\u201d White House Deputy Press Secretary Kush Desai said in a post on X.<\/p>\n

Experts said that reprieve<\/a> could be short-lived as a ceasefire between the US and Iran fell apart after commercial tankers were hit in fighting last week. Since then, prices have climbed from $3.79, according to AAA data.<\/p>\n

\u201cJune CPI is a rearview mirror \u2013 the decline was real, but reflects prices from wks ago. new escalations have oil right back up, WTI [West Texas intermediate crude oil] over $80 today. nat avg $3.81 and climbing: $4 gas is days away, w\/diesel headed back to $5,\u201d Patrick De Haan, head of petroleum analysis at GasBuddy, said in a post on X.<\/p>\n

Al Jazeera asked the White House about the increasing petrol prices in a follow-up to the post on X, but it did not respond.<\/p>\n

Other sectors saw pullbacks as well. The cost of apparel fell by 0.6 percent on a monthly basis, the cost of a used car or truck fell by 0.2 percent, and the cost of electricity ticked down 1 percent.<\/p>\n

Food prices grew by 0.2 percent on a monthly basis. Meat prices jumped 0.6 percent, and lettuce prices rose 6.5 percent. Fresh fruit and vegetable prices, however, fell by 0.5 percent. Tomato prices tumbled 10 percent.<\/p>\n

Annual surge<\/p>\n

The annual data tells a different story. Overall, the CPI rose 3.5 percent after a 4.2 percent increase in May, which was the largest annual increase in more than three years.<\/p>\n

Energy prices jumped 15.7 percent compared with a year earlier with petrol prices rising 27 percent. Shelter costs increased 3 percent.<\/p>\n

Grocery prices were up 3 percent compared with this time last year. Meat prices were up 7.4 percent, and fresh fruits and vegetables were up 5.3 percent.<\/p>\n

The CPI report was released amid heightened pressure on the Federal Reserve under its new leader. Fed Chairman Kevin Warsh<\/a>, who took the helm from Jerome Powell in May, said in prepared remarks to lawmakers that the central bank has \u201cno tolerance for persistently elevated inflation\u201d.<\/p>\n

CME FedWatch, which tracks the likelihood of monetary policy decisions, forecasts an 87.7 percent probability that rates will remain at 3.5-3.75 percent with the remaining probability forecasting a 25-basis-point increase to 3.75-4 percent at the next policy meeting this month.<\/p>\n

US markets were trending upwards on the heels of the consumer data. The Nasdaq was up 0.9 percent, followed by the S&P 500, which was 0.5 percent higher than at the market open. The Dow Jones Industrial Average was up 0.1 percent in midday trading.<\/p>\n","protected":false},"excerpt":{"rendered":"Inflation eased due to cheaper energy, but experts warn price increases may return after renewed US-Iran tensions. Consumer…\n","protected":false},"author":2,"featured_media":526140,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,338,65,219,1667,564,1943,111,43,139,69,27199,135,172835],"class_list":["post-526139","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-business-and-economy","tag-donald-trump","tag-economy","tag-energy","tag-food","tag-inflation","tag-new-zealand","tag-news","tag-newzealand","tag-nz","tag-oil-and-gas","tag-politics","tag-us-israel-war-on-iran"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/526139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=526139"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/526139\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/526140"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=526139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=526139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=526139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}